Tesla CEO Elon Musk sold Tesla shares worth approximately $ 1.09 billion, following a Twitter survey last weekend he asked his followers if he should sell 10% of his stock. 57.9% voted in favor and 42.1% voted against, and now we are here.
Multiple deposits with the Securities and Exchange Commission (SEC) Wednesday show the CEO the sale of 934,091 shares on more than 2.1 million options at a price of $ 6.24 per share. Musk’s stock traded for between $ 1,200 and $ 1,100 each, while Tesla’s stock fell 4.8% on Monday.
Musk disclosed in the regulatory filing that he sold part of his stake to meet tax obligations relating to the exercise of stock options. The CEO is facing income tax on stock earnings that were allotted in 2012 at $ 6.24 per share, which is ridiculous looking at the stock price today which closed at $ 1,067.95 on Wednesday. Whenever Musk decides to exercise those options, he will see a tax account of over $ 15 million.
This news isn’t exactly surprising. Musk has already said he would publicly sell a large block of his Tesla stock, and the SEC filing reveals that Musk was already planning to sell the stock on Sept. 14, making his Twitter show just that: a show. Additionally, during a conversation with tech journalist Kara Swisher in September, Musk said that most of his stock options will expire in August 2022 and more or less promised to sell them in the fourth quarter.
Musk still holds over 170 million Tesla shares, which represents about 17% of ownership.