Musk on his way to offloading 10% of his Tesla stake
Elon Musk sold Tesla stock for a seventh consecutive trading day, bringing him almost halfway to his promise to unload 10% of his stake in the electric carmaker.
The CEO on Tuesday disposed of 934,091 shares worth about $973m, according to regulatory filings. That follows $7.8bn of sales he has carried out since he asked his Twitter followers on November 6 whether he should pare his stake. Musk also exercised 2.1-million of equity options on Tuesday, and part of the share sales were to help pay taxes on that.
To reach the threshold of selling 10% of his Tesla stake, Musk would need to sell 17-million shares, which is equal to about 1.7% of the company’s outstanding stock. So far, he has got rid of about 8.2-million shares. If his exercisable options are factored in, he would need to sell even more.
Musk has exercised 6.4-million options since the Twitter poll, in which he did not disclose he had derivatives expiring in 2022. He said in September that he was likely to exercise “a huge block” of them towards the end of this year. That same month, he established a pre-arranged trading plan to carry out “an orderly sale of shares related to the exercise of stock options”, filings show.
Tesla shares rose as much as 2.4% in US pre-market trading, having snapped a three-day losing streak in the previous session to close 4.1% higher at $1,054.73. The stock is down 14% from its peak on November 4.
Musk is the world’s richest person with a $288.5bn fortune, according to the Bloomberg billionaires’ index.
Bloomberg. More stories like this are available on bloomberg.com
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