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Thread: Elon Musk offloads $1.1 billion worth of Tesla shares after Twitter poll troll

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    Default Elon Musk offloads $1.1 billion worth of Tesla shares after Twitter poll troll

    Elon Musk offloads $1.1 billion worth of Tesla shares after Twitter poll troll

    Forget this weekend’s poll, Musk has been planning this stock sale for a while

    By Richard Lawler

    Nov 10, 2021



    Over the weekend, Elon Musk made headlines by tweeting, as he often does, and in one of the tweets, proposed selling 10 percent of his stock in Tesla. At the time, he said, “I will abide by the results of this poll, whichever way it goes.” Now, SEC filings (1, 2) reveal the exec has exercised his options on over two million shares of the automaker and sold 934,091 of them (via CNBC). At the company’s current valuation, the shares he sold are worth about $1.1 billion.

    So did he do it because someone on Twitter voted one way or the other? In this case, no, because as analyst Matt Levine points out, the documents reveal the plan for this sale has been established since September 14th.



    As we told you over the weekend, Musk’s compensation plan granted him a number of shares that were due to expire in 2022. To exercise that grant, he will need to sell about $15 billion in shares, as he described in detail at the Code Conference on September 28th, two weeks after arranging this sale. At that time, Musk said, “I have a bunch of options that are expiring early next year, so a huge block of options will sell in Q4. Because I have to, or they’ll expire.”

    The financial benefits and penalties that apply to Musk mean Wednesday’s sale is not the last one — and despite Musk’s edgelord persona, it doesn’t matter what you say on Twitter about billionaires and taxes.

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    Default Re: Elon Musk offloads $1.1 billion worth of Tesla shares after Twitter poll troll

    Elon Musk sells over $1.1 billion of Tesla stock

    Nov 10 2021

    According to financial filings out Wednesday, CEO Elon Musk is selling a block of Tesla shares via a plan that he set in motion on September 14 this year. The sales amount to more than 930,000 shares worth over $1.1 billion. He still holds more than 170 million shares.

    Musk sold these shares in part to satisfy tax obligations related to an exercise of stock options.

    Before the sale plan was made public, Elon Musk asked his 62.5 million Twitter followers to vote in an informal poll, telling them their vote would determine the future of his Tesla holdings. The filings reveal that, in fact, he knew some of his shares were slated for sale this week.

    Following the Twitter poll, shares of Tesla slumped more 15% over Monday and Tuesday, before rebounding more than 4% on Wednesday.

    Citadel CEO Ken Griffin, speaking at the DealBook Online Summit on Wednesday, said he personally did not want to see Musk sell. “Individuals like Elon Musk, like Jeff Bezos have transformed life, and we want to keep them in control of their companies, as long as they’ve got the energy and the ambition to keep moving the business forward.”

    Previously, Musk signaled that he was likely to sell “a huge block” of his options in the fourth quarter. At an appearance at the Code Conference in September, Musk said when his stock options expire at Tesla, his marginal tax rate would be over 50%.

    Current and former board members including chairwoman Robyn Denholm, Elon Musk’s brother Kimbal Musk, Ira Ehrenpreis and Antonio Gracias have offloaded hundreds of millions of dollars worth of Tesla shares since Oct. 28 after Tesla’s market cap surpassed $1 trillion.

    Among those insider sales, Kimbal Musk’s was the only transaction that was not listed as a 10b5, or planned sale. Kimbal Musk sold around $109 million worth of his shares a day ahead of his brother’s Twitter poll.

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