Tesla shares stronger: Elon Musk sells Tesla shares valued at $ 1.1 billion
After his sensational Twitter vote over the weekend, Tesla CEO Elon Musk cashed in his company’s shares for the first time in years.
From Monday through Wednesday, he sold roughly $ 5 billion worth of Tesla paper after redeeming some of his stock options. Some of the deals had been locked into a sales plan agreed in September – almost two months before Musk launched his Twitter poll.
At the weekend, Musk had users vote on Twitter whether he should sell ten percent of his Tesla shares in order to pay more taxes. 58 percent of the 3.5 million votes were in favor. The package was worth around $ 21 billion, but the price fell after the survey. As the richest person in the world, Musk has recently been increasingly challenged to contribute more to the common good.
Musk had already announced stock sales at a conference appearance in September. He had to redeem stock options that would otherwise expire by August next year at the latest. He has to pay taxes on the price gain achieved in this way – and in return he has to sell shares in order to get enough money.
Musk now exercised 2.15 million options from 2012, currently valued at around $ 2.5 billion. The shares were priced at just $ 6.24 each – and he has to pay tax on the difference to today’s value. At the same time, the share sales began, according to a series of mandatory reports to the US Securities and Exchange Commission on Wednesday.
Musk initially sold more than 930,000 Tesla papers on Monday, earning around $ 1.1 billion. This transaction contained the reference to the September sales plan that is missing from Tuesday and Wednesday stores.
On Monday, Musk sold the shares for up to a good $ 1,196, and by Wednesday the price had in some cases dropped to the $ 1,000 mark. After the sales, Musk still held around 167 million Tesla shares. At the time of the poll over the weekend, it was a good 170 million.
According to the financial service Bloomberg, it was the first time since 2016 that the multi-billionaire sold shares in the electric car manufacturer. Musk sold to pay taxes on the proceeds.
Tesla has seen a massive stock market rally in recent years, which, according to billionaire charts such as the “Forbes” list or “Bloomberg Billionaires” – at least on paper – made Musk the richest person in the world with an estimated fortune of around 300 billion dollars Has. He also holds a significant stake in the space company SpaceX.
On Thursday, Bloomberg Musk topped its billionaire rankings with $ 299 billion – ahead of Amazon founder Jeff Bezos with $ 201 billion.
In the Twitter vote, the Tesla boss alluded to the current US debate about tax avoidance by the super-rich and plans for taxes on unrealized price gains. What Musk ultimately wanted to achieve with the vote and the extent to which he planned to sell shares can only be speculated about so far.
Musk has so far not given any information on how quickly he wants to get the ten percent sold shares. Long-term schedules are often set for stock sales by top managers. This is to avoid accusations that they use internal knowledge for clever deals.
US politicians such as Senator Ron Wyden, who advocates higher taxation of billionaires, had been unimpressed by Musk’s Twitter action. “Whether the richest man in the world pays taxes should not depend on the results of a Twitter poll,” wrote the Democrat on the short message service.
At times, Tesla shares on the NASDAQ climbed 1.63 percent to $ 1,085.92.
NEW YORK (dpa-AFX)
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