CEO Musk sells $5 billion in Tesla shares after Twitter poll

DETROIT (AP) – After making a promise on Twitter, tesla CEO elon musk It sold about 4.5 million shares of the electric car maker’s shares, for more than $5 billion.

The sales, announced in 10 regulatory filings late Wednesday, amount to about 3% of Musk’s stake in the company.

About $1.1 billion will be spent to settle tax liabilities for stock options granted to Musk in September.

Last weekend, Musk said he will sell 10% her holdings worth more than $20 billion in the company, according to the results of a survey he It was done on Twitter. The sell tweets caused the stock to sell on Monday and Tuesday, but it rallied somewhat on Wednesday. Shares rose 2.6% to $1,096 in extended trading on Wednesday and are up more than 50% this year.

The filings also revealed that Musk exercised over 2.1 million options to buy shares for $6.24 each. Shares of the company closed Wednesday at $1,067.95 per share.

According to forms submitted to the U.S. Securities and Exchange Commission, the tax filings were “automatically executed” as part of a trading plan agreed on September 14 to sell options that expire next year. That was almost two months ago he The idea of ​​selling emerged on Twitter.

After the transactions, Musk still owns about 167 million tesla share.

Musk NS teslaAccording to data provider FactSet, the company’s largest shareholder as of June owns about 17% of the company. heAccording to Forbes, he is the richest person in the world, with a net worth of around $282 billion, most of them in the United States. tesla Stock.

Wedbush Analyst Daniel Ives calculated that: Musk About $10 billion in taxes comes from stock options that expire next summer.

Sometimes abrasive and unpredictable Musk said he Some Democrats have suggested selling the stock even if they don’t sell any shares, as they force billionaires to pay taxes when the price of their stock rises. However, statements about unrealized earnings, also called the “billionaire tax,” were removed from President Joe Biden’s budget, which is still being negotiated.

“A lot has been done lately from unrealized gains as a way to avoid taxes, so I suggest selling 10% of my earnings. tesla stock,” he tweeted Saturday afternoon. “Do you support this?”

tesla does not pay Musk cash salary, but received large stock options. “I only have stock, so the only way I personally pay taxes is to sell stock.” Musk tweeted.

Tesla Inc. Although headquartered in Palo Alto, California Musk announced that it would move its headquarters to Texas.

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