Elon Musk sells Tesla shares for $1.1 billion after promising to give up 10% of his stake in the company
November 11, 2021 04:28 GMT
The Mughal company sold about 900,000 cars of the Electric Vehicle Company.
After promising to sell 10% of his shares in Tesla according to the results of a vote he released on Twitter, Elon Musk has sold more than 900,000 shares of the company for an amount exceeding $1.1 billion, according to two reports filed with the US Securities and Exchange Commission (SEC, for its English acronym) late Wednesday.
On Wednesday, when the New York Stock Exchange closed, Tesla shares were trading at $1,067.95. Musk’s sale was carried out “automatically” as part of a strategy adopted on September 14th to sell stock options that expire in 2022.
Nearly two months later, the South African businessman launched a poll on Twitter last Saturday in which he asked his followers whether he should sell 10% of his stake in Tesla, and vowed to comply with the query’s result. As a reason for the potential sale, Musk cited the popular view that “unrealized profits are a vehicle for tax evasion.”
The majority of respondents (57.9%) voted in favor of the businessman’s proposed sale after the US government announced its plans to tax billionaires to help finance the increase in social and insurance spending. Under the country’s current tax law, assets such as shares are only taxed when sold.
Musk currently owns 170.49 million shares of Tesla, so 10% of that amount would represent 17.049 million shares.