Tesla Inc (TSLA) CEO Elon Musk sold $ 1 billion worth of shares in the automaker on Tuesday, according to filings with the US Securities and Exchange Commission.
Documents filed on Tuesday show Musk exercised options to buy 2.15 million stock options at $ 6.24 a share and sold 934,091 shares.
Tesla shares closed at $ 1109.03 a share on Tuesday, which equates to a selling price of $ 1.03 billion.
“The common shares were sold solely to meet the tax liabilities of the reporting entity,” the filing said.
Why is it important
Musk sold shares to meet tax withholding obligations. The sales began after the Tesla CEO polled his Twitter followers on November 6, asking them if he should sell 10 percent of his shares. However, it was reported that the plan was put into effect several months before the vote.
On Friday, it became known that Musk’s total weekly sales of Tesla shares were estimated at $ 5.7 billion.
Tesla’s CEO does not receive a salary and is compensated through a stock option plan. Musk would have to pay $ 15 billion in taxes and would probably have sold the stock regardless of the poll results.
According to the latest filings, the trading plan was adopted on September 14 to “orderly sell” stocks associated with the exercise of options expiring in 2022.
Musk said earlier this year that he only sells Tesla shares when “there is no choice.”
Written by Rahit Watts
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