The CEO of the electric vehicle manufacturer shed about 3% of his total stakes in the company, almost a third of the promise made to his followers.
Elon Musk, Tesla’s chief executive, sold about $ 5 billion in stock, the billionaire reported in filings Wednesday, just days after he surveyed Twitter users about the sale of 10% of his stake. . These are partly transactions that were planned before the consultation on the social network.
In its first share sale since 2016, Musk’s trust sold nearly 3.6 million Tesla shares, worth about $ 4 billion, while also selling another 934,000 shares for $ 1.1 billion after exercising options to acquire almost 2.2 million shares.
According to Forbes, the 4.5 million shares are equivalent to about 3% of his total stakes in the electric vehicle maker, which makes up the bulk of his fortune estimated at $ 281.6 billion. Therefore, it would need to get rid of more than double what it has sold so far to fulfill its promise.
As reported by Business Insider, a portion of the sale was already announced long before the Twitter poll, in a plan unveiled in September to resolve tax obligations.
On Saturday, Musk asked his followers whether he should sell 10% of his stake in Tesla, which contributed to the drop in the company’s share price after most Twitter users came out. According to the sale.
The stock plunged 12% on Tuesday in a multi-day sale that jeopardized the company’s position in the trillion-dollar club but recovered 4.3% on Wednesday.
The shares traded in Frankfurt Tesla rose 4.1% to 953 euros in early trading on Thursday to recover from heavy losses earlier in the week, in the period that Musk had sold. In the New York Stock Exchange premarket, stocks are up 3% before the markets open.
Musk launched the query on Twitter after a proposal by Democratic lawmakers in the United States to tax significant capital heavily through their shares, which usually pay taxes only when they are sold.
But Musk’s intervention in debating income inequality in the United States and who should pay for social security programs was sharply criticized.
Democratic Senator Ron Wyden wrote on the social network, “Whether or not the world’s richest man pays his taxes should not depend on the poll on Twitter.”