After Elon Musk, CEO of Tesla
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Consulted with his Twitter followers regarding the sale of Tesla shares, and in light of what he had said in the past about the fact that he was expected to sell “a significant portion” of his options in the fourth quarter – now he also performs, Musk sold Tesla shares worth $ 6.9 billion from his mutual fund. According to published financial documents, it still holds more than 166 million shares in the company.
Some of the shares were sold in part to meet tax liabilities related to the exercise of stock options. However, according to a Bloomberg News report, another reason for the sale of the shares is Musk’s personal debts.
The sale affected the company’s share price. Tesla shares fell 15.4% over the past week, marking the company’s worst performance in 20 months. It was also the worst week for Tesla stock ever, except for declines in February and March 2020, when the corona plague caused markets to plummet.
As mentioned, last week Musk asked more than 60 million of his followers on Twitter to vote in an unofficial poll and told them that their vote would determine the future of his holdings in Tesla. Tesla CEO claimed he was actually responding to criticism that he avoided paying his fair share of taxes, instead of just managing his options holdings, asked users on Saturday to decide whether to hold or sell 10% of his shares.
However, financial documents submitted during the week show that some were up for sale this week, regardless of the survey results.
Speaking at the Code Conference in September, Musk said that when his options expire at Tesla, his marginal tax rate will be over 50% and so he is already planning to sell them soon. “I have options that expired early next year, so … a huge block of options will be sold in the fourth quarter – because I have to or they will expire,” Musk said at the conference.
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