Elon Musk sells $930mn worth of Tesla shares to cover stock option tax

14:20, 16 November 2021
Elon Musk sells $930mn worth of Tesla shares to cover stock option tax Photo: Look Press

The entrepreneur has already vended Tesla’s stock several times in the recent week after his Twitter opinion poll had told him to sell 10% of the company’s shares.

Tesla CEO Elon Musk has sold another $930 mln in shares to meet tax obligations related to the exercise of stock options.

Monday filings indicated that the businessman sold over 934,000 shares at prices ranging from $6.25 to $1,028 per unit after exercising options to buy 2.1 million stocks at $6.24. Consequently, Musk had to pay the tax on the difference between the exercise price and the stock’s market value which closed at $1,013.

Last Monday the richest man on Earth exercised his stock option for the first time in recent days and also sold some 934,000 shares for $1.1 bln after exercising options to get around 2.2 mln stocks.

According to Tesla’s 2020 data, Musk had an option to purchase 22.86 mln shares. It expires next August.

Last week the entrepreneur sold about $5 bln of the company’s stock after his Twitter poll decided that he should sell 10% of his Tesla shares over the US Democrats’ initiative to tax billionaires’ stocks and other tradeable assets which are often regarded as a means of avoiding direct taxation.

Tesla’s market capitalization has considerably decreased since the poll was launched and even temporarily dropped from the “$1 trillion club”.