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Tesla Drops as Musk’s Sale of Shares Crosses Halfway-Point

Stock MarketsNov 26, 2021 11:00
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By Dhirendra Tripathi

Investing.com – Tesla stock (NASDAQ:TSLA) traded nearly 4% lower in Friday’s premarket as it attempted to absorb impact of another sale of shares by the company’s Chief Executive Officer Elon Musk.

The billionaire offloaded 934,091 more shares for $1.05 billion in the latest exercise, according to regulatory filings posted late Tuesday, bringing his sale of the company’s equity to 9.2 million and worth about $9.9 billion.

The sales happened after Musk exercised his option to buy 2.15 million shares of the company. Tesla’s outstanding equity base comprises 1 billion shares.

The maverick CEO has sold Tesla shares in several tranches since he conducted a Twitter (NYSE:TWTR) poll November 7 asking whether he should sell 10% of his holding. The latest sales imply that Musk has crossed the halfway mark of his plan to sell 10% of his stake in the company.

While Musk made it look like he would be directed by popular opinion – which eventually favored him selling the stake – he needed money to pay a large tax bill on his newly acquired Tesla stock. Most likely, he will be left with a surplus after paying his taxes.

To reach the 10% threshold that he mentioned in his Tweet, Musk would need to sell some 17 million shares, or about 1.7% of the company’s outstanding stock. If his exercisable options are factored into his overall ownership, he’ll need to sell even more, according to Bloomberg.

 

 

 

 

 

Tesla Drops as Musk’s Sale of Shares Crosses Halfway-Point
 

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