According to financial filings out Wednesday, CEO Elon Musk is selling a block of Tesla shares via a plan that he set in motion on September 14 this year. The sales amount to more than 930,000 shares worth over $1.1 billion. He still holds more than 170 million shares.
Musk sold these shares in part to satisfy tax obligations related to an exercise of stock options.
The shares were sold “solely to satisfy the reporting person’s tax withholding obligations related to the exercise of stock options,” the filing said. The contracts, which came from a stock option award Musk received in 2012, were set to expire in August next year.
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Tesla rose 4.3% on Wednesday to close at $1,067.95, paring losses this week to less than 13%. The decline on Monday and Tuesday wiped out $50 billion from Musk’s net worth.
Tesla is expected to break $50 billion in annual sales for the first time this year, after growing revenue more than 28% and eclipsing $30 billion for the first time in 2020. Last year was also the first profitable year in Tesla’s history, and the company maintained profitability long enough to gain acceptance to the S&P 500 index SPX, -0.82% earlier this year.
Tesla stock has increased more than 160% in the past year and nearly 1,500% in the past two years total, pushing the company’s market cap past $1 trillion, a level previously reserved for Big Tech stalwarts Apple Inc.
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