Elon Musk sold the stock for $ 7 billion. But below the price – PRAVDA.sk

Before selling the shares, Musk said he had to exercise a large number of stock options this year, which would lead to high taxes. The sale of part of his shares could provide him with the means to pay for them.

Photo: TASR / AP

Elon Musk let fans decide on Twitter whether to sell part of Tesla’s shares.

Tesla chief Elon Musk said late last week that he had sold the company’s shares for nearly $ 7 billion (€ 6.11 billion), and the proceeds from their sale were, in his own words, “closer to tax maximization than to minimization.” However, not all economic experts see the same.

Before the sale, Musk said he would have to exercise a large number of stock options this year, leading to high taxes. The sale of part of his shares could potentially bring him funds to pay taxes.

One week ago, Musk said on Twitter that he would sell 10 percent of his shares if platform users approve the move. Most people in the survey voted in favor. The 50-year-old billionaire sold more than 5.1 million shares of Tesla stock this week. The shares that Musk got rid of in this way were sold at a significantly lower price than if they had sold them before the vote on Twitter. This welcome massive sale hit his company’s stock, which fell 15.4 percent in the week.

His statements on Twitter followed a Democrat proposal in the US Congress that the rich should be taxed more severely. Some Democrats are pushing billionaires to pay taxes when the price of the shares they hold rises, even if they do not sell any. However, the term “unrealized gains” or even “billionaire tax” has been removed from President Joe Biden’s draft budget.

A few days ago, Tesla reached a market value of $ 1 trillion. And according to the US Securities and Exchange Commission (SEC), Musk still owns approximately 167 million Tesla shares.

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