Elon Musk sells $931 million worth of Tesla stock

Tesla CEO Elon Musk sold another $931 million of his company’s stock on Monday (15), bringing his total stock sales over the past six trading days to $7.8 billion. Billionair Sold some stocks these days.

Tesla stock sales It’s part of his plan There are two months to exercise a larger set of stock options before they expire next August.

Company members, such as CEOs, can set up a stock sale plan so that sales occur automatically without being affected by non-public information they may have about the company.

Follow up on sales Twitter Poll conducted on the 6th and 7th of November, where followers asked if he should sell 10% of his stake in the company to increase his taxable income.

But Monday’s sales were driven more by the need to exercise stock options he holds before they expire next August, along with a requirement to pay tax on those shares once he does so.

The filings it filed with the SEC – the Securities and Exchange Commission (and the equivalent of CVM in Brazil) on Monday said the most recent sales were made “only to fulfill withholding tax obligations relating to the exercise of purchase options. of 2,107,672 shares, as shown here.”

She said she is exercising the stock options, which must expire in August 2022 in order to have an “orderly sale of the shares related to the exercise of the options” before they expire.

The exercise of the options on Monday and subsequent sales were virtually identical to the transactions he completed on Monday of last week.

On November 8, Musk exercised 2.2 million options and sold 934,000 shares for $1.1 billion. On Monday, he exercised 2.1 million options and sold 934,000 shares again.

The difference in the money he got from sales is due to the drop in Tesla’s (TSLA) stock price over the past week. The number of sales he made is one of the factors that drove the stock price down.

The net worth of the shares at the time the options are exercised will be treated as taxable income, subject to tax at the federal borrowing rate of 40.8%.

He could end up with a federal tax bill of close to $10 billion once he exercises all of those soon-expiring options, depending on the value of the shares at the time the shares were purchased.

The other sales he completed between Monday (8) and Monday (15) came from Tesla stock he already owned directly. Musk has owned the majority of these shares since Tesla’s initial public offering in 2010. These sales will only be taxed as long-term capital gains at a 20% tax rate.

Share sales still reflected less than 5% of its shares in Tesla (TSLA). That, and the fact that it still has options to call an additional 18.6 million shares, all due in August, means that additional share sales are almost certain.

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