Elon Musk Sold $5 Billion Of Shares After Twitter Poll
Elon Musk Is the Richest Individual in The World with A Personal Value of More Than $280 Billion
The chief executive officer of Tesla, Elon Musk, has sold about $5 billion worth of shares in the electric market. This has come after several days after Musk has asked his more than 63 million followers on social media platform twitter whether he should sell his 10% stock shares in his electric car firm Tesla. The shares of the entire company had fallen down by 16% in the time duration of two days after the Twitter poll had come out in favor of Elon Musk to sell some part of his shares, but ad later regained some ground later on Wednesday.
Selling of stock shares
The most valuable car-making firm in the World is currently Tesla and has a stock market value of more than $1 trillion. The trust owned by Mr. Musk had recently sold about 3.6 million shares of Tesla soon after the Twitter poll, which has a total market value of $4 billion.
He had also sold another major number of shares which are around 934,000 and has a market value worth of $1.1 billion after exercising the options to be able to acquire around 2.2 million company shares, according to the filing data with the United States stock market regulating authority.
The document that has surfaced showed that about one-fifth of the firm shares had been sold based on the pre-arranged trading plan that had been set up in the month of September, which had been a long time before Elon Musk posted the Twitter poll from his account regarding the sale of some amount of his own personal Tesla shares.
However, it had been shown in the filings of the regulators that the sale for the shares that have still remained have not been yet scheduled. The sale is equal to about 3% of the total holdings in Elon Musk’s Tesla, though it has yet to be confirmed if the sale has any kind of relationship with the Twitter poll of the weekend, or if Elon Musk if intending to stagger some more sales of the firm.
On Saturday, the Twitter poll was posted by Elon Musk and asked his followers to give their vote on whether he should sell his own part of stock shares in his own car-making firm Tesla to be able to meet his tax obligations. He posted a tweet that major unrealized gains have been made after he has been able to make some tax avoidance, due to which he has proposed to sell 10% of his stock shares in Tesla. He further added that he would be abiding with the results of the Twitter poll, whether they are in his favor or not.
Public twitter poll
The Twitter poll had been able to attract more than 3.5 million public votes, with about 58% votes that were in favor of Elon Musk selling his stock shares.
It has also been highlighted by Elon Musk that he has not been paid in cash by his electric car firm Tesla, as he only owns a major portion of the stock shares of Tesla, and the only way through which he would be able to make payments for his taxes would be to sell some amount of stock to cover the expenses.
Some part of the last transaction by Elon Musk has seen him be exercising his option of stocks that he has been awarded by Tesla in the year 2012 as a part of his package for payment. Such kinds of transactions are likely to trigger income taxes, which are generally settled by using the money that is raised from the immediate selling of his recently acquired stock shares. This recently made sale of stocks has been the first time since the year 2016 when Elon Musk had last exercised his options for stocks. At that time, he had also sold some of his personal shares to be able to cover a bill of income tax which had been close to about $600 million.
The prospect for further future sales to come could possibly cause disruption for some of the traders, along with affecting the share prices of Tesla. It is being thought that Elon Musk would want to protect the shares of his firm to some extent and would not want his people to leave the firm.