Thursday, November 18, 2021
    Nepal Breaking NewsWorldTesla CEO Elon Musk sells $5 billion worth of stock following a...

    Tesla CEO Elon Musk sells $5 billion worth of stock following a Twitter vote.

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    Tesla CEO Elon Musk has sold approximately 4.5 million shares of the electric car maker’s stock, raising almost $5 billion as a result of a promise he made on Twitter.

    According to 10 regulatory filings made late Wednesday, the sales amount to around 3 percent of Musk’s shareholding in the company, according to the company.

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    Approximately $1.1 billion will be used to settle Musk’s tax obligations related to the stock options he received in September.

    In a tweet over the weekend, Musk announced that he would sell 10 percent of his company’s stock, which is worth more than $20 billion, in response to the results of a poll he had conducted on Twitter. The stock sharply on Monday and Tuesday as a result of the sale tweets, although it recovered some ground on Wednesday. The stock rose 2.6 percent to $1,096 in extended trading on Wednesday, bringing its year-to-date gain to more than 50 percent, according to FactSet.

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    The filings also revealed that Musk had exercised options to purchase slightly more than 2.1 million shares at a price of $6.24 per share. The shares of the corporation concluded Wednesday’s trading session at $1,067.95 per share.

    According to documents filed with the and Exchange Commission, the tax transactions were “automatically implemented” as part of a trading plan set on September 14 to sell options that expire the year, which included the tax transactions. That was about two months before he publicly explored the idea of selling the company on social media.

    Following the transactions, Musk still holds approximately 167 million shares of Tesla.

    According to data provider FactSet, Musk was the firm’s largest stakeholder as of with a stake of approximately 17 percent in the company. According to Forbes, he is the world’s wealthiest individual, with a net worth of approximately $282 billion, the majority of which is held in Tesla stock.

    According to Wedbush Analyst Daniel Ives, Musk will owe approximately $10 billion in taxes as a result of stock options that will vest in the summer of 2018.

    Because some Democrats have pushed for billionaires to pay taxes when the value of the stocks they own rises, even if they do sell any shares, the occasionally abrasive and unpredictable Musk indicated he was considering selling the stock. The language on unrealized gains, popularly known as a “billionaires tax,” was removed from President Joe Biden’s proposed budget, which is still being finalized.

    I propose selling 10% of my Tesla stock because “a lot has been said recently about unrealized gains being a tool of tax avoidance,” he wrote on Saturday afternoon in a Twitter post. “Do you think this is a good idea?”

    Tesla does pay Musk a salary in cash, although Musk has gotten a number of stock options. “Because I only own stock, the only method for me to pay taxes personally is to sell stock,” Musk wrote in a Twitter post.

    Tesla Inc. is headquartered in Palo Alto, California, although CEO Elon Musk has that the company’s headquarters would be relocated to Austin, Texas.

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