Elon Musk sells $5 billion of Tesla shares to pay taxes

According to Forbes, the 4.5 million shares represent around 3% of his total interests in the electric vehicle company, which accounts for the majority of his estimated $281.6 billion fortune.

Elon Musk, the CEO of Tesla, sold roughly $5 billion in shares, according to documents filed on Wednesday, just days after polling Twitter users about selling 10% of his stock. Musk’s trust sold roughly 3.6 million shares in Tesla, valued at around $4 billion, in his first stock transaction since 2016, after exercising options to buy over 2.2 million shares, he sold another 934,000 shares for $1.1 billion. nearly 2.2 million shares.

According to Forbes, the 4.5 million shares represent around 3% of his total interests in the electric vehicle company, which accounts for the majority of his estimated $281.6 billion fortune. Musk surveyed Twitter followers on Saturday about selling a 10% stake in Tesla, which helped to drive down the stock’s price after a majority of those polled said they agreed with the sale.

The stock dropped 13% in a multi-day selloff on Tuesday, putting the company’s status in the $1 trillion clubs in jeopardy, but it rebounded 4.3 percent on Wednesday. According to the document, the options-related sales were put up in September through a trading strategy that permits company insiders to execute preplanned transactions. The accompanying taxes are paid through the sale of option-related shares. It was unclear how or if the trading strategy was linked to Musk’s Twitter poll. A request for further comment from Tesla was not entertained.

Musk still has over 20 million stock options that will expire in August of next year.

According to Mark Arnold, chief investment officer at Hyperion Asset Management in Brisbane, where Tesla has the top holding in its global fund, if Musk follows through on his 10% stock sale proposal, it would be a little negative in the short run.

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