Elon Musk sells another $ 1bn in Tesla stock
Tesla Inc (NASDAQ 🙂 CEO Elon Musk sold $ 1 billion in shares of the automaker on Tuesday, according to filings with the U.S. Securities and Exchange Commission (SEC).
What Happened The filings, which were made Tuesday, indicate that Musk exercised options to buy 2.15 million stock options at $ 6.24 each and that he sold 934,091 shares.
Tesla shares closed at $ 1,109.03 on Tuesday, which would value the sale at $ 1.03 billion.
As can be read from the presentation, “the common shares were sold solely to satisfy the withholding tax obligations of the reporting person.”
Why It Matters Musk has been selling stocks for a while to meet withholding tax obligations. The sales came after the CEO of Tesla conducted a survey of his Twitter (NYSE 🙂 followers on Nov. 6, asking if he should sell 10% of his shares. However, according to the information gathered, the plan was put in place months before the survey was conducted.
On Friday, it was announced that the total shares Tesla sold during the week were valued at $ 5.7 billion.
The Tesla CEO does not receive a salary and is compensated through a stock option plan. Musk faces a $ 15 billion tax bill and likely would have sold the stock regardless of the survey result.
Also read: Elon Musk sells $ 950M more in Tesla shares
According to the latest filings, the trading plan was adopted on September 14, with the purpose of carrying out “an orderly sale” of shares related to the exercise of options scheduled to expire in 2022.
Earlier this year, Musk noted that he only sells Tesla stock when “there is no other option.”
Photo: Courtesy of Nvidia (NASDAQ 🙂 via Flickr
Read the article also in Benzinga Spain
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