Elon Musk in recent weeks sold Tesla shares worth nearly $ 10 billion and it doesn’t seem to be over with the sale. Earlier this month, Musk had people vote on Twitter to sell 10% of his stake in Tesla. Not surprisingly, such a vote turned out, and Musk has now really sold part of his stake.
Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock.
Do you support this?
— Elon Musk (@elonmusk) November 6, 2021
Although Tesla’s CEO pretends to be doing so in response to pressure from the media and politicians on the rich because they often do not realize their profits and therefore do not pay taxes on them, the reality is likely to be different. Even without the sale of shares, Musk will pay hefty taxes for its options.
10% of Musk’s share makes some 17 million shares. To date, it has sold $ 9.2 million worth $ 9.9 billion, more than half of what it intended. Surprisingly, Tesla’s shares have not reacted to this with a devastating fall and the market capitalization has stabilized above USD 1 trillion.
It’s a wonder how this hussar piece works for Musk. Anyone would expect Tesla’s shares to go down sharply after the company’s CEO sells a significant portion of his stake, realizing his huge profit. But when the Twitter vote and some other reasons in the form of responses to tax criticism become entangled, it is actually as if nothing has happened and Tesla shares have weathered these turbulences very well.
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