Elon Musk sells $5bn worth of Tesla shares to cover taxes

14:31, 11 November 2021
Elon Musk sells $5bn worth of Tesla shares to cover taxes Photo: Ding Ting/Xinhua/Global Look Press

In two separate deals, the entrepreneur sold a part of Tesla’s 10% stock he promised to vend last week.

Tesla CEO Elon Musk sold about $5 bln of the company’s stock days after his Twitter poll told him to sell 10% of Tesla’s shares. It has become Musk’s first sell-off since 2016.

In the first impromptu deal carried out on Tuesday and Wednesday Musk’s trust sold more than 3.5 mln shares worth around $3.9 bln while on Wednesday evening Musk sold another part of the stock of almost 1 mln shares worth some $1.1 bln via a plan that he set in motion on September 14.

The 4.5 mln shares sold in the recent days make around 3% of Musk’s overall Tesla stock exceeding 170 mln units worth over $1,150 each. Forbes has recently estimated Musk’s fortune at more than $281 bln after Tesla’s market capitalization surpassed a $1 trillion threshold.

The stock selling comes shortly after Musk’s Twitter poll in which he asked whether he should sell 10% of Tesla’s stock. 57.9% of 3.5 mln people who participated in it supported the sell-off idea.

The voting appeared over the proposition of US Democrats to tax billionaires’ stocks and other tradeable assets which are often regarded as a means of avoiding direct taxation.

After the voting had been closed Tesla’s shares dropped by more than 5%.