Elon Musk share sale purchase update: Sells more Tesla stock, says ‘almost done’ with 10% goal; stock rallies

Elon Musk said on Wednesday that he was “almost done” with his stake sale, after offloading over $14 billion worth of Tesla stock in around 40 days.

Elon Musk Tesla share
On December 22, Elon Musk said that he is almost done selling Tesla stock (REUTERS)

Elon Musk said on Wednesday that he was “almost done” with his stake sale, after offloading over $14 billion worth of Tesla stock in around 40 days. Elon Musk has so far sold around 13.5 million shares, nearly 80% of what he had planned to sell, for about $14.1 billion, according to publicly available data. In order to deliver on his pledge of selling 10% stock, Elon Musk needs to dispose of about 17 million shares, assuming his pledge excludes exercisable options. “I sold enough stock to get to around 10% plus the option exercise stuff and I tried to be extremely literal here,” he said in an interview on Tuesday with satirical website Babylon Bee.

On December 22, Elon Musk said that he is almost done selling Tesla stock. “This assumes completion of the 10b sale,” he tweeted, referring to his prearranged sales plan related to his stock options. “There are still a few tranches left, but almost done,” he tweeted later. The billionaire has been offloading Tesla stock since a Twitter poll asking whether he should sell 10% of his stake in Tesla. Simultaneously, he has been exercising his stock options to purchase fresh shares.

Selling Tesla shares on one hand, buying in options on the other

Under the Rule 10b5-1 trading plan set up in September, Elon Musk has exercised stock options that expire next year. While selling Tesla stocks worth over $14 billion over the last one and a half month, he’s also exercised options to buy about 16.4 million stock options, actually increasing his stake in the electric-auto maker. Musk still has more than 3 million stock options that expire in August next year. By the end of this exercise, he will be a net buyer, according to CNN Business. Out of the 13.5 million shares sold, 8.06 million were sold to pay taxes related to his options exercise.

Tesla shares surge after Musk says he is almost done selling shares

Adding to Tuesday’s 4.3% gain, Tesla stock rallied almost 5% Wednesday, and ended 7.5% higher at $1,008.87, valuing the company at just over $1 trillion. The 7.5% surge came after Musk said he has now sold enough stock to reach his goal of selling 10% of his shares. Earlier this week on Monday, the stock closed at its lowest level since October 21. The EV manufacturer’s shares fell around 24% since a peak on 4 November, just prior to Musk’s Twitter poll. Over the past three years, the company’s stock has surged more than 1,100%.

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