Elon Musk sells $1 billion of Tesla stock and still owns more than before
Elon Musk has sold a large chunk of Tesla shares — worth about $1 billion — yet he now owns more than when he started selling.
Tesla CEO Elon Musk has sold 10.1 million of the company’s shares — worth about $1 billion.
Yet surprisingly, he now owns 564,000 more shares than he did at the start of the selling spree.
Mr Musk, the world’s richest man, made headlines last month when he asked Twitter if he should sell 10 per cent of his Tesla stock. When the Twitter poll ended, 57.9 per cent voted in favour of him selling the stock
Yet paradoxically, despite selling millions of shares, Mr Musk now has more than he started with. That’s because at the same time as selling, he’s exercised options to buy more shares.
The options are at the bargain price of US$6.24 a share. Tesla shares were selling for US$1003.80 today. They are down about 6 per cent for the month, but up 37.55 per cent for the year.
CNN reports Mr Musk has exercised options to buy 10.7 million Tesla shares. The options were due to expire on August of 2022.
Mr Musk may yet still sell another 7 million shares if he intends to sell the 10 per cent of his holdings as promised on Twitter.
Mr Musk had tweeted: “Much is made lately of unrealised gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock. Do you support this?”
“I will abide by the results of this poll, whichever way it goes,” he added in another tweet.
Mr Musk’s tweets followed a proposal by US Congressional Democrats to tax the super wealthy more heavily by targeting stocks, which are usually only taxed when sold.
His intervention was not received well by critics.
“Whether or not the world’s wealthiest man pays any taxes at all shouldn’t depend on the results of a Twitter poll,” tweeted US Senator Ron Wyden.
“It’s time for the Billionaires Income Tax,” he added, drawing a personal insult in a reply from Mr Musk
‘Insane’ spending
The billionaire this week slammed US President Joe Biden’s social and climate spending bill as “insane”.
“Honestly, I would just can this whole bill,” Mr Musk said during The Wall Street Journal CEO Council Summit. “Don’t pass it, that’s my recommendation.”
The Build Back Better Act will spend about $1.7 trillion for Democratic Party priorities like paid leave and measures against climate change.
The Congressional Budget Office estimates it will add about $160 billion to the national debt over the next decade.
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