Last week, Elon Musk polled on his Twitter handle about whether he should vend 10% of his Tesla shares. Since the majority of people voted ‘YES’, Elon Musk (CEO of Tesla) finally sold 930,000 Tesla shares that were worth $1.1 Billion (approximately Rs. 8,190 crores). Musk has filed documents with US Security and Exchange Commission financial regulators on the same.
Elon Musk exercises the price option at $6.24 per contract as per the regulatory filing. He sold the shares in response to “satisfy the reporting individual’s tax withholding obligations regarding the exercise of stock options” Now the 50-year-old entrepreneur lost tens of millions in unrealized profit after selling his stocks at a lower price.
This has declined Elon Musk’s net worth after wiping out $50 Billion. However, he still holds 171 million Tesla shares i.e., 17% of ownership.
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- Musk disclosed he exercised 2.2 million stock options that were worth $2.2 billion and then he sold 934,000 shares for $1.1 billion.
- The average price of Tesla shares comes out to be $1170
- The transaction represents less than 1% overall stake that Elon Musk holds
- He still owns 171.1 million shares
- It was done in an attempt to help curb tax avoidance among the ultra-wealthy
- Tesla shares picked up to 2.7% on Wednesday. It was closed at $1068.