Elon Musk exercised the last batch of a Tesla package Inc.
stock options that underpinned several weeks of stock trading by the CEO.
Mr Musk converted more than 1.5 million options due to expire in August 2022 into shares on Tuesday and sold more than 934,000 shares to cover the associated taxes, according to regulatory documents.
The Tesla boss has now exercised more than 22.8 million stock options since trading began last month. This total represents all vested options that would have expired next year, which Mr. Musk earned as part of a 2012 compensation package.
The transactions increased Mr. Musk’s stake in Tesla from around 170.5 million shares to over 177 million shares.
Combined stock sales in recent weeks have reached a value of over $ 16 billion. The sales are mostly tied to an investment plan Mr. Musk planned in September, according to leaked information.
After outlining the investment plan, Musk last month polled Twitter users on whether he should sell 10% of his Tesla shares; people on the social media platform who voted approved of the idea for a sale. The chief executive began exercising options on Tesla shares and selling shares of the company on November 8.
Mr. Musk has sold around 15.7 million shares since then. The number of shares constituting the fulfillment of his 10% pledge depends on how Mr. Musk defines his stake. Mr Musk, who is paid by Tesla in shares and does not accept a cash salary from the company, said on Twitter last week that “there are still a few installments left, but almost complete.”
Tesla did not immediately respond to a request for comment on whether Mr. Musk planned to sell more shares of the company in the coming weeks.
Mr. Musk has a net worth of around $ 279 billion, making him the richest person on the Bloomberg Billionaires Index. He has also been selling stocks in recent weeks unrelated to stock options.
Mr Musk has said he will pay more than $ 11 billion in taxes this year. He has fought verbally with some Democratic lawmakers over taxes, including Senator Elizabeth Warren (D., Mass.), Who called on the billionaire to pay more. Mr. Musk responded by saying he will pay more taxes than any American in history this year.
Mr. Musk is likely to have future rounds of trading activity as part of a successful 2018 shareholder-approved compensation plan. Mr. Musk has already been granted additional stock options under this program.
Tesla shares slumped after Mr. Musk started trading last month. The stock, which closed 0.5% on Tuesday at $ 1,088.47, is down more than 10% since the day Mr. Musk responded to the poll on Twitter.
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Appeared in the print edition of December 29, 2021 under the title “Musk Exercises Options in Share Sale”.