Elon Musk sells $1.1 billion in Tesla inventory; plan set in movement earlier than Twitter ballot


Elon Musk has sold roughly $ 5 billion in Tesla Inc. shares so far this week and may not close.

Filing released Wednesday afternoon by the Securities and Exchange Commission showed that Musk sold more than 4.5 million Tesla TSLA, + 4.34% shares for about $ 4.997 billion. If he keeps a promise on Twitter Inc.TWTR, -2.55%,
he would sell at least 12.5 million more shares.

The richest man in the world asked his 60-plus million Twitter followers on Saturday to sell 10% of his shares and said he would stick to the results. More than 3.5 million votes were cast and won with “yes”. Musk had more than 170 million Tesla shares over the weekend, which would get him about a quarter of the way to sell 10% of that stock.

It would be less if Musk didn’t count the sales he made on Monday, which was part of a plan put in place on Sept. 14, well before the Twitter poll. Musk exercised 2.1 million expiring options and sold more than 930,000 of them. In doing so, he raised $ 1.1 billion to pay taxes on exercising options.

Musk then sold more than 3 million shares on Tuesday and about half a million shares on Wednesday in 215 separate transactions for a combined total of $ 3.88 billion. Unlike the Monday sale, these sales were not part of a pre-planned stock sale known as 10b5-1, according to SEC filings.

Musk had previously publicly admitted that he has to sell some Tesla shares for tax reasons and that he will harvest many more Tesla shares in the years to come. Tesla’s board of directors awarded him performance awards in 2018 with qualifying benchmarks based on market capitalization and other factors, some of which have already been achieved.

See also: Tesla Adds S&P 500 Disruptive Tech Exposure As Index Climbs To Record Highs

Tesla is expected to reach $ 50 billion in annual sales for the first time this year, after sales grew more than 28% and topped $ 30 billion for the first time in 2020. Last year was also Tesla’s first profitable year, and the company maintained profitability long enough to accept the S&P 500 SPX index at -0.82% earlier this year.

Tesla stock is up more than 160% over the past year and nearly 1,500% over the past two years, bringing the company’s market cap to over $ 1 trillion, a level previously seen by big tech Stars reserved to Apple Inc. AAPL was -1.92%,
Microsoft Corp. MSFT, -1.53%,
Alphabet Inc.GEL, -2.03% Goog, -1.76%,
Amazon.com Inc. AMZN, -2.63% and Facebook FB, -2.30%.
The automaker’s success has led traditional auto companies to develop plans for electric cars and Wall Street to fund potential competitors like Rivian Automotive Inc. RIVN, + 29.14%,
which went public on Wednesday and approached a market cap of $ 100 billion before generating nominal income.

See also: 5 things you should know about Rivian

Tesla shares rose 2.7% in after-hours trading Wednesday after SEC filings disclosed the $ 1.1 billion stock sale; the other submissions were published after the extended session closed.

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