Tesla CEO Elon Musk has sold more than $6.9 billion worth of shares in the electric carmaker, according to the AP. Elon Musk has sold more than 5.1 million Tesla shares, with 4.2 million of those held in trust. Tesla’s stock has dropped 15.4% in the last week as a result of the sale.
The move comes after Tesla, the world’s largest electric vehicle manufacturer, became the latest US tech company to reach a market capitalization of $1 trillion in October 2021.
Musk’s selloff came just days after a public Twitter poll in which he questioned if he should sell 10% of his Tesla stock. Musk has stated that he will accept the poll’s results regardless of the outcome. Tesla’s stock price plummeted as a result of the tweet. Nearly 58 percent of the 3.5 million votes cast in the poll were in favor of him selling the stock.
Tesla CEO Elon Musk accepted the outcome and sold his company’s stock. The stocks Musk sold were at a much lower share price than when he announced his decision on Twitter. Elon Musk still owns around 167 million shares in the electric vehicle behemoth after selling them.
Musk’s move came in response to a plan by US Congressional Democrats to raise taxes on the ultra-wealthy, who are currently only taxed when their stock is sold.
Musk’s equity sales will be subject to a $1.4 billion capital gains tax.
According to the Bloomberg Billionaires Index, Elon Musk is the world’s richest individual, valued at $294 billion.
Meanwhile, when it comes to selling his Tesla stock, Musk says it’s more about tax maximization than minimization. He was responding to a Twitter poster who claimed that if Musk sold options instead of shares, he would wind up with more Tesla stock. “A diligent observer would see that my (low basis) share sale rate far surpasses my 10b (high basis) option exercise rate, indicating that I am closer to tax maximization than minimization,” Musk responded in his tweet.
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