San Francisco – Tesla Managing director Elon Musk exercised all of his options that expire next year, signaling the end of his stock sale, sending the share price of the world’s most valuable automaker down.
Last week, Musk said he would hit his target of selling about 10% of his stake in Tesla “when preprogrammed sales of 10 billion are complete,” potentially alluding to related stock sales. to his choice.
Since early November, he has exercised options that expire next year and sold a portion of Tesla stock to pay taxes under a “10b5-1 rule” trading plan established in September.
With the exercise of his option on 1.6 million shares on Tuesday, he exercised all his options on 22.8 million shares, which expire in August. He also sold 934,090 shares with cost $1.02 billion to pay taxes, filings show.
“This 10b5-1 rule trading plan was completed on December 28, 2021,” Tesla said in the filing on Tuesday.
Tesla shares have lost about a quarter of their value after Musk asked his Twitter followers in November whether he should sell his 10% stake. They rebounded to $1,088.47, but remained below the closing record high of $1,229.91 in November.
CLOSE GOAL 10%
So far, Musk has sold off 15.7 million shares of Tesla, roughly equal to the 10% the billionaire has pledged to sell.
Of the 15.7 million shares, 10.3 million involve call options. Musk sold another $5.4 million, cashing in on Tesla’s strong recovery.
He’s been selling off $16.4 billion worth of stock since early November when he said he’d sell 10% of his Tesla stock if Twitter users agreed.
The Twitter poll comes two days after Tesla shares hit a record high following a rally stemming from Tesla car orders from rental company Hertz.
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