True to his Twitter poll which totally cannot be messed with and is most certainly entirely legitimate, Elon Musk has begun selling his stake in Tesla Inc (NASDAQ: TSLA). The controversial executive this evening filed two separate Form 4’s with the SEC, indicating he has begun selling his stake.
In total, Musk exercised 2,154,572 of his stock options held in Tesla at an exercise price of $6.24, effectively costing him $13.4 million to do so. Following this, he has thus far indicated he has sold a total of 934,091 shares as of November 8, 2021.
The shares were sold at prices ranging between $1,196.24 and $1,135.05, resulting in Musk grossing out at an estimated $1,102,342,478.72 – yes, that’s $1.1 billion. He currently has 1,220,481 remaining shares to be sold under the latest round of options exercised, with many, many more to go before they expire in August 2022. In total, 23.7 million options have vested under the current option agreement in place that are set to expire next year.
Notably, the shares were sold under a Rule 10B5-1 trading plan adopted by Musk back on September 14, 2021 – indicating that the poll conducted was actually meaningless, and he was intending to sell the shares regardless of its outcome.
The equity closed down 4.84% on Monday following selling pressure, before falling a further 11.99% on Tuesday as a result of continued pressure on the equity, suggesting that Musk may have continued to sell his stake in the firm.
UPDATE 10:12 PM EST:
It appears that our story above was slightly premature. As it turns out, Musk has been selling continuously over the last three days based on the most recent filings.
On Tuesday, Musk collectively sold a total of 3,088,047 common shares of Tesla, between the prices of $1,012.33 and $1,173.22. The sale of shares all came from his personal trust, garnering him gross proceeds of $3,353,496,896.10.
On Wednesday, Musk then continued his routine of dumping his shares, selling a total of 500,000 from his trust at prices between $1,000 and $1,077.36. He collected gross proceeds of $527,271,411.03 on the day from his sales transactions.
Collectively, over the three day period across both his personal holdings and holdings in his trust, Musk sold a total of 4,522,138 shares for gross proceeds of $4,983,110,785.86.
Tesla last traded at $1067.95 on the Nasdaq.
Information for this briefing was found via Edgar. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
