Tesla CEO Elon Musk has sold 6.36 million shares this week — about 37% of the 17 million. He now needs to sell about 10 million more shares to meet his pledge to sell his 10% stake.
Tesla Inc. shares closed down 2.8% on Friday at $1,033.42, breaking an 11-week winning streak.
Tesla CEO Elon Musk offloaded $6.9 billion worth of shares in the electric car company this week, taking advantage of a meteoric rally that pushed the firm’s value to more than $1 trillion. The billionaire sold 1.2 million shares held by his trust on Friday for more than $1.2 billion, according to a US securities filing released later in the day, the latest in a flurry of his stock transactions.
The world’s richest man and Tesla’s top shareholder tweeted last Saturday that he would sell 10% of his shares if the social media platform’s users approved the move. 10% shares would be around 17 million shares at the time of his tweet.
He has sold 6.36 million shares this week — about 37% of the 17 million. He now needs to sell about 10 million more shares to meet his pledge to sell his 10% stake.
Tesla Inc. shares closed down 2.8% on Friday at $1,033.42, breaking an 11-week winning streak. Shares have risen more than 46% this year after a sharp rally in October.
The stock sales, which marked the first time that Musk redeemed a stake of that size since the company’s founding in 2003, were massive by capital market standards, eclipsing most companies’ initial public offerings.
By flagging the move to Twitter users, he has blunted potential criticism of cashing out at a time when Tesla’s valuation has blew up and shares are at record highs.
Still the Most Valuable American Automaker
Tesla shares fell 15.4% this week and lost some $187 billion in market value, more than the combined market capitalization of Ford Motor Co. and General Motors Co.
Despite the week’s losses, Tesla is still the most valuable automaker in the world. The recent strong gains in the stock have underscored the demand for shares of electric vehicle (EV) makers.
Following Rivian Automotive Inc.’s blockbuster market debut on Wednesday, the two most valuable US automakers are EV automakers.
Irvine, Calif.-based rival, Musk, tweeted Thursday: “There have been hundreds of automotive startups in both electric and combustion, but Tesla is the only US carmaker to reach high volume production and positive cash flow over the past 100 years. “
Musk previously said he would have to exercise a large number of stock options this year, which would create a huge tax bill. Selling some of your stock can free up money to pay taxes.
Prior to the sale, Musk owned a roughly 23% stake in Tesla, including stock options. After his exercise on 2.15 million shares on Monday, he has options for 20 million more shares by next August.
“We expect share sales to continue, as Musk has billions of dollars worth of options that would otherwise be worthless,” said Jason Benowitz, senior portfolio manager at Roosevelt Investments, and he also conducted share sales under 10b5-1 plans. planned.” Group LLC in New York.
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