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Elon Musk sells $1.1B in Tesla shares to pay taxes

Written by: Leonard Parker | Houston Business News | 11th November


After making a promise on Twitter, Tesla CEO Musk has sold about 900,000 shares of the electric car maker's stock, netting over $1.1 billion that will go toward paying tax obligations for stock options.

FILE - In this March 14, 2019, file photo, Tesla CEO Elon Musk speaks before unveiling the Model Y at the company's design studio in Hawthorne, Calif. Musk is asking on Twitter whether he should sell 10% of his stock in the electric-vehicle company amid pressure in Washington to increase taxes on billionaires like him.Jae C. Hong/AP

DETROIT (AP) — After making a promise on Twitter, Tesla CEO Elon Musk has sold about 900,000 shares of the electric car maker's stock, netting over $1.1 billion that will go toward paying tax obligations for stock options.

The sales, disclosed in two regulatory filings late Wednesday, will cover tax obligations for stock options granted to Musk in September. He exercised options to buy just over 2.1 million shares for $6.24 each. The company's stock closed Wednesday at $1,067.95 per share.

The transactions were “automatically effected” as part of a trading plan adopted on Sept. 14 to sell options that expire next year, according to forms filed with the U.S. Securities and Exchange Commission. That was nearly two months before he floated the idea of the sale on Twitter.

After the transactions, Musk still owns about 170 million Tesla shares.



Source: https://www.chron.com/business/technology/article/Elon-Musk-sells-Tesla-shares-taxes-16611106.php