Elon Musk unloads over $10 billion worth of Tesla shares
- Elon Musk sold 9,34,000 Tesla shares worth $1 billion.
- In the past month he has dumped shares worth $10 billion, overall.
- Musk’s move is probably an attempt to pay a federal tax bill of $11 billion.
Elon Musk, the CEO of Tesla and SpaceX, continues his stock selling spree. As per security filings, the billionaire entrepreneur sold 9,34,000 Tesla shares worth $1 billion. This brings the total value of shares, Musk dumped in the past month, to over $10 billion.
Musk, who has an estimated net worth of $284 billion, had tweeted earlier that he planned to sell 10% of his Tesla stock. Notably, these sales are an attempt to pay for an enormous federal tax bill of $11 billion, which Musk triggered while exercising Tesla’s stock options. Due to Musk’s selling pattern, the stock prices for Tesla have gone down by 10.7%.
Investors have noted that Musk’s behaviour has been putting pressure on the company, but the share prices are still sky high and are favoured by retail investors. Further, the share values are up by 50% since the start of 2021. Musk has also said that he plans to exercise stock options which allow him to buy an additional 2.1 million Tesla shares.
Interestingly, Musk has tussled with lawmakers in DC, in the past, over tax hikes that were proposed for the rich. After he sold nearly $6 billion worth of shares in December, Musk decided to make Bernie Sanders the focus of his humour.
He replied to Sanders’ demand that the rich should pay their fair share, saying that it had slipped Musk’s mind that Bernie was still alive. He further dared the former Presidential candidate that he would sell more shares if Bernie told him to.
Even before locking heads with Sanders, Musk had conducted a poll on Twitter, asking his followers if he should sell 10% of his Tesla stake, since there was a lot of talk about unrealized gains becoming a method of tax avoidance. His move seems to come as a response to this poll, more than anything else. Notably, he still has to sell over 12 million shares to hit the target.