Tesla CEO Elon Musk has sold $1.1 billion worth of Tesla stock after conducting a poll on Twitter asking whether he should offload 10% of his stake in the company.
On November 8, Musk exercised 2.15 million stock options at a price of $6.24 per contract, as per a regulatory filing. He then sold 934,000 shares, with the filing stating that the transaction was “solely to satisfy tax withholding obligations” related to the exercise of stock options. These options, awarded to Musk in 2012, were set to expire in August 2022, which prompted the need for immediate action.
The sale follows a poll Musk created on Twitter on November 6, where he asked his followers if he should sell 10% of his Tesla stock. Over 3.5 million votes were cast, with nearly 58% in favor of the sale. Musk has since said that his decision was driven by the desire to address concerns over unrealized gains being used for tax avoidance.
The sale marks Musk’s first sale of Tesla shares since 2016, when he last exercised stock options and sold shares to cover about $590 million in income taxes. Following the disclosure of the transaction, Tesla shares dropped significantly, losing around $50 billion from Musk’s net worth. However, the stock rebounded by 4.3% on Wednesday, closing at $1,067.95.
While Musk’s move to sell shares was triggered by the stock option exercise, his Twitter poll has generated significant public attention. Critics and supporters alike have closely followed Musk’s actions, with many speculating that more sales could follow as part of his promise to reduce his stake in the company. Musk’s wealth, primarily derived from his Tesla holdings, stands at approximately $300 billion, with around 60% of it tied to the electric car company.
Executives often set up pre-arranged trading plans to avoid accusations of insider trading, but the specific terms of Musk’s plan have not been fully disclosed, leaving some uncertainty as to whether the stock sale would have occurred regardless of the outcome of the poll.
The latest move underscores Musk’s complex relationship with both his wealth and the public eye, drawing attention to the broader conversation surrounding stock sales, tax obligations, and corporate transparency.
