Entrepreneurs have left to sell 5 million securities to achieve the specified goal.
The founder of electric car maker Tesla has sold another 934,091 shares of the company. Information about this appears on the website of the American Securities and Exchange Commission (SEC).
For the sale of the specified volume of Tesla shares, Elon Musk raised $ 906.5 million. In total, the entrepreneur sold 12 million securities.
Why Elon Musk is selling Tesla shares
The story of selling Tesla shares from the company founder’s portfolio begins in November 2021. The entrepreneur shares information on his microblog with an audience that he is accused of tax evasion through unrealized profits. Including, we are talking about Elon Musk’s income from holding Tesla shares.
To avoid charges, the entrepreneur offered to sell 10% of the company’s securities from his portfolio and pay taxes. At the same time, Elon Musk provides an opportunity to make decisions about the sale of the volume of shares shown to his customers. The entrepreneur audience chose to sell 10% of its Tesla securities. The company founder promised to follow the advice of his microblog readers.
Forbes calculates that 10% of the total volume of securities controlled by Elon Musk is 17 million shares. Their total cost, by the time the entrepreneur made the decision to initiate the sale, was $20.8 billion.
A few days after the survey was completed, Elon Musk started selling assets. The first sale was recorded on November 8. At the same time, SEC documents show that entrepreneurs have been preparing for the initiative since September 2021. Market participants suggest that microblog polling could become a formality.
In December, entrepreneurs continued to move towards the threshold of 10% of the shares sold. It is noteworthy that against the backdrop of sales, Elon Musk shared his thoughts on firing with readers of the microblog. According to the Tesla founder, he was interested in working as an influencer. As the entrepreneur noted, he could devote all his time to this work.
As of December 14, 2021, to achieve this target, entrepreneurs must sell 5 million shares.
Tesla’s stock price reaction to the sale
Effects of electric car manufacturers reacting to sales, orchestrated by Elon Musk, with a decline. In late November, the security showed a slight correction, which was followed by another wave of declines. Against the backdrop of news releases about the next selling piece, Tesla’s shares are down 4.98% for the day.
Despite the fall in the price of corporate securities, Elon Musk has maintained his status as the richest person in the world.
We will remind, previously American Time magazine called Elon Musk as person of the year.