That's the scheme. "Tesla has confirmed in a new SEC filing that...

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Stephan90

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11/11/21

20:01

Post #: 57508296
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Originally posted by Stephan90: ↑

Elon Musk has to sell shares. Not only would he need to pay about 15 billion US dollars in income tax to be able to exercise all his stock options, but his stake in Tesla is also leveraged with borrowed money. Selling 10 % of his Tesla shares, taking into account that the stock would drop on the news and during the time of the transactions, it should just be enough to exercise all the options and reduce his leverage. This company is valued at over 1 trillion dollars and will sell about 890K vehicles this year.
Add to that that Kimbal Musk sold Tesla shares worth over 100 million dollars last week, but the SEC filing was only published Friday after market close, before Elon started his twitter poll.

Tesla director Kimbal Musk sells nearly $110 million in stock - MarketWatch Elon Musk sells around $5 billion of Tesla stock (cnbc.com)

"Elon Musk sells around $5 billion of Tesla stock"

"His trust sold more than 3.5 million shares worth over $3.88 billion in a flurry of trades carried out Tuesday and Wednesday. Earlier Wednesday evening, filings showed Musk is selling a block of Tesla shares via a plan that he set in motion on Sept. 14 this year."

So why do a twitter poll??? This sale is not about tax justice but about being able to exercise his stock options (and in my opinion to cash in while the stock trades at unsustainable prices). No matter if the stock is currently overvalued or not, the exercise price that Elon Musk can pay to get the Tesla shares is so ridiculously low that he will immediately make extremly high book gains almost no matter how much the stock will drop over the next days and weeks.

The Orocobre CEO also sold, because he needs money to be able to exercise his stock option, because he most likely has to pay income tax on the gains as well.

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That's the scheme.

"Tesla has confirmed in a new SEC filing that Elon Musk sold about $1.1 billion worth of Tesla stock (TSLA) after announcing that he would through a strange Twitter poll.

However, he also collected about $2.3 billion worth of Tesla shares through stock options that he exercised from his previous CEO grant."

"Musk on Monday exercised the options at a price of $6.24 per contract, according to a regulatory filing Wednesday."

Electrek - EV and Tesla News, Green Energy, Ebikes, and more

Elon Musk sells $1.1 billion of Tesla stock after Twitter asks him to offload (livemint.com)

Last edited by Stephan90: 11/11/21

ORE Price at posting: $9.35 Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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