Tesla’s Musk sells $ 930 million in stock to cover tax on stock options – .

0
9
Tesla’s Musk sells $ 930 million in stock to cover tax on stock options – .


Tesla CEO Elon Musk gestures as he visits the construction site of Tesla’s Gigafactory in Gruenheide near Berlin, Germany on August 13, 2021. Patrick Pleul / Pool via Reuters

Nov. 15 (Reuters) – Tesla (TSLA.O) CEO Elon Musk sold $ 930 million worth of shares in order to meet withholding obligations related to the exercise of call options shares, US securities documents said on Monday.

Musk sold 934,091 shares after exercising options to buy 2.1 million shares at $ 6.24 each on Monday. Tesla shares closed at $ 1,013.39. He is required to pay taxes on the difference between the strike price and the fair market value of the shares.

This is the second time in a week that the billionaire has exercised his stock option. Last Monday, he sold an additional 934,000 shares for $ 1.1 billion after exercising options to acquire nearly 2.2 million shares. Read more

The two option-related sales were put in place in September via a trading plan that allows company insiders to establish pre-planned trades on a schedule, according to the documents.

At the end of 2020, he had an option to purchase 22.86 million shares, which expire in August of next year, according to a Tesla filing.

On November 6, Musk asked Twitter users about the sale of 10% of its stake, pushing Tesla’s share price down after a majority on Twitter said it agreed to the sale. It was not clear how or if the business plan tied to Musk’s Twitter poll.

Report by Hyunjoo Jin in San Francisco and Aakriti Bhalla in Bengaluru; Edited by Himani Sarkar

Our Standards: Thomson Reuters Trust Principles.

LEAVE A REPLY

Please enter your comment!
Please enter your name here