Elon Musk vends $1.1B in Tesla stock in wake of Twitter assurance

Key points: 

• In September, Musk was allowed stock options and the tax obligations of the options will be covered from the recent sale.
• Musk sold 9000,000 shares of Tesla after giving assurance on Twitter.

Tesla shares worth $1.1B sold by Elon Musk: 

Elon Musk, The CEO of Tesla, sold almost 9000,000 shares of the company, worth above $1.1B after he made a promise on Twitter. The funds from the sales will cover the payment of tax obligations for stock options. 

The sales were disclosed in two regulative filings late Wednesday. The sales will cover tax obligations for stock allowed to Musk in September. 

He implemented options to purchase just over 2.1 million shares for $6.24 US each. 

Tesla’s stock clinched Wednesday at $1,067.95 US per share. 

As stated by US’ Securities and Exchange Commission’s filed forms, the plan of selling options which expire next year was acquired on Sep. 14. As part of a trading scheme, the transactions were “automatically effected.” That was almost 60 days before he offered the idea of the sale on Twitter. Elon is still the owner of 170 million Tesla shares after his transactions. Source – cbc.ca

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FactSet, the data provider company stated that Musk owns almost 17% of the company, becoming Tesla’s largest shareholder. 

Musk’s net worth is nearly held up in the Tesla stocks. According to Forbes, he is the World’s richest person with a net worth of $282 billion US. 

Twitter Poll

On Twitter, last week, Musk conducted a poll for selling his holdings. Based on the answers, he said he would vend 10 per cent of his holdings in the firm. 

The sales tweet resulted in a sell-off of the stock on Monday and Tuesday, although some of it got retrieved on Wednesday.