Elon Musk sold nearly $ 7 billion of Tesla stock to pay more taxes, says

Elon Musk cashed in nearly $ 7 billion (€ 6.12 billion) in Tesla stock this week. He indicated on Twitter that he intentionally made these sales to pay higher taxes. Tesla’s chief executive sold about 6.4 million shares in five days, generating about $ 6.9 billion (€ 6 billion), according to documents filed with the US federal market financial regulator.

Divestments drove a 15% drop in the electric vehicle company’s share price this week, as the group lost around $ 180 billion (€ 157.4 billion) in its market capitalization. “An attentive observer would notice that my stock sale rate is significantly higher than my 10 billion option exercise rate, which brings me closer to maximizing than minimizing taxes,” Elon Musk tweeted on Thursday, November 11.

Also Read – Here’s Why Tesla’s Autonomous Driving System Is Controversial

Twitter poll

Several competing theories collide as to why the billionaire sold his shares. The executive indicated several months ago that he had stock options that expire in 2022 and that he plans to sell shares to cover the cost of exercising them and paying related taxes.

However, the Tesla CEO and head of SpaceX launched a poll on Twitter last weekend, asking if it should sell 10% of its shares, and promised to respect the result, which turned out to be positive. He cited pressure from lawmakers seeking to institute a “multi-million dollar tax” to motivate his poll.

On the other hand, Michael Burry, made famous by the movie “The Big Short,” suggested this week that Elon Musk may need to sell shares to pay off his personal debts, since the executive had loans of $ 88 million. June 30th.

The billionaire still owns 166 million shares, or about 17% of Tesla’s outstanding shares. If you fulfill your commitment to sell around 17 million shares in total, and if you maintain your current sales rate, your disposals could continue for a few more weeks.

Original version: Theron Mohamed / Insider

Also read: Elon Musk loses $ 50 billion in two days, but is still the richest man in the world

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