Securities sold in part to pay stock option taxes. After consulting users on social media, the value of the electric car company’s stock has had heavy losses on Wall Street and the richest man in the world would have lost about 50 billion dollars
After launching a Twitter poll, Elon Musk sold around 4.5 million Tesla shares worth nearly $ 5 billion between Monday and Wednesday. On Monday, the richest man in the world sold over 930,000 stocks for about $ 1.1 billion to pay taxes on the stock options exercised that day. On Tuesday and Wednesday, the CEO of the company that makes electric cars made the remaining sales, about 3.6 million shares for an amount that is around 4 billion dollars.
Part of the sales related to share taxes
The 4.5 million shares sold, according to the Reuters, equivalent to approximately 3% of Musk’s total holdings in Tesla. In the documents describing these latest disposals, no reference is made to the poll that the tycoon launched on Twitter over the weekend on the opportunity to sell 10% of his shares in Tesla. With reference to the sale of over 930 thousand shares, The sun 24 hours explains that “the options Musk exercised come from a grand prize he received in 2012. He should have exercised them before August next year or they would have expired. The taxes on these transactions are usually covered by the immediate disposal of some of the newly acquired shares ”.
Tesla’s leaks after the Twitter poll
After the poll launched on Twitter, Tesla stock fell by around 4.84% on Monday, lost nearly 12% on Tuesday, and then rebounded on Wednesday to gain 4.34%. Musk would therefore have sold at a much lower price than what he would have obtained before the poll launched on Twitter. An initiative that would have cost about 50 billion dollars to Tesla’s CEO and which has opened a debate among insiders: a slip of the richest man on the planet or yet another stroke of genius?