Elon Musk seems to be sticking to his promise to sell his stock.
Shares of Tesla (TSLA) traded lower on Friday amid an SEC filing showing the company’s CEO and founder just sold another $687 million worth of stock.
This follows an SEC filing earlier in the week revealing that Elon Musk sold some $5 billion in Tesla shares.
The moves comes after Musk asked his Twitter followers whether he should sell 10% of his stock to pay capital gains taxes.
Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock.
Do you support this?
— Elon Musk (@elonmusk) November 6, 2021
“I will abide by the results of this poll, whichever way it goes,” he added.
Tesla shares dropped some 16% after the poll came out in favor of selling.
The shares he sold so far are just 3% of his holdings. If he abides by the results of the polls, he will have to sell some $15 billion more in shares.
Initial filings showed that Tesla’s CEO has sold $1.1 billion worth of shares. He acquired those shares by exercising stock options he received as compensation.
Musk has acquired these stocks in 2012, at $6.24 per share. These same shares are now trading at $1,067 per share. This difference is the tax base he will have to pay capital gains taxes on.
Notably, the first sale had a pre-set sale date, set weeks before the Twitter poll.
Further filings showed that Musk sold another $4 billion in Tesla shares.
Trish Regan, publisher of TrishIntel.com, wrote in American Consequences that despite the sales, she still likes shares of Tesla which she recommended on her Trish Regan Show podcast back in August of 2020. (They’ve since soared 1400%.) Regan wrote,
“I think most Tesla investors would agree: A little bit of crazy is something most people are willing to put up with considering the massive returns they have enjoyed. Tesla shares have more than doubled from one year ago. Ultimately, Musk and the trillion-dollar company he has created are still worth the headache.” Read her entire piece here.