Spark Global Limited reports:
Tesla CEO Elon Musk launched an online poll on Twitter on Saturday and announced that he would decide whether to sell 10 percent of his tesla shares based on the results of the poll. About 58 percent support Musk selling 10 percent of Tesla shares.
Musk really seems to mean what he says.
Musk exercised stock options on Nov. 8 to buy 2,154,572 Tesla shares at $6.24 per share, according to the filing. Musk immediately sold 934,000 of his exercised shares for $1.1 billion. The stock options, which Musk was granted in 2012, expire on Aug. 13, 2022.
It’s worth noting that tesla shares last traded at $6.24 in November 2012.
It is now clear that the 934,000 shares Mr Musk sold were for tax purposes, as he must pay income tax on the proceeds. Under US law, option income will be taxed at the highest level of ordinary income. Due to Musk’s status as a California resident, the total federal tax rate plus California state tax will be 54.1%, and Musk is subject to a $1.35 billion option tax (the difference between the strike price and the market price is taxed when the call is exercised at a below-market strike price).
It’s important to note that this is The first time Musk has sold Tesla stock since 2016.
As shown in the chart below, musk’s stock sale leaves him with 1,20,481 shares of Tesla stock that he acquired through the exercise of options.
Combining the chart above with the chart below, Musk initially sold the stock at $1,135.05 and sold it in batches over the next hour. Unexpectedly, as Musk continued to sell, Tesla’s stock soared to a record high, leaving the last of Musk’s sales at $1,196.236.
Tesla’s stock price fell sharply shortly after Musk sold the stock at its peak.
The market reaction to Musk’s sale was violent, with Tesla’s stock falling 16% in the first two days of the week before rebounding. It’s worth noting that in January the archetypal “Big short” Berry predicted tesla’s stock would collapse like the housing bubble of the mid-2000s, telling shareholders to “enjoy it while it lasts.”
While musk seems no sooner said than done, but can be found from below, the musk on twitter by voting seems to be a lie, because the musk as early as September 14 trading plan through 10 b5-1 (set by the SEC, allows the company internal staff get some has not been publicly disclosed information when to buy and sell stocks) to arrange the stock to sell.
Separately, Mr Musk has sold more than 4.5m Tesla shares this week at a valuation of about $5bn, according to SEC filings, including about $1bn of tesla stock sold on Monday as part of a planned sale on September 14; A total of 3.59 million shares were sold Tuesday and Wednesday at a valuation of $4 billion, the amount musk promised to sell on Saturday via twitter; Selling his 10 percent stake, or 17.05 million shares, would require Musk to sell at least 12.5 million shares of Tesla stock, as he promised on Twitter.
If the sale of 934,000 shares triggered such a sharp drop, and Musk sold more than 4.5 million shares this week, the next question for tesla’s other shareholders is what will happen to tesla if Musk continues to sell because of a potential billionaire tax.
Reprint indicated source：Spark Global Limited information