Elon Musk’s share sale could total $ 18 billion by the end of the year

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SpaceX owner and Tesla CEO Elon Musk will arrive on the red carpet for the Axel Springer Award 2020 in Berlin, Germany, on December 1, 2020.

Britta Pedersen | Getty Images

Of Elon Musk $ 906 million sale of Tesla With Monday’s inventory, he was one step closer to his final sales goal. Big question: what are your goals?

Based on his November Twitter poll, Musk We plan to sell 10% of his total Tesla stake. At the time, he owned over 170 million shares, so in theory he would sell about 17 million shares to achieve his performance. Twitter pledge..

As of Tuesday morning, he sold a total of 11.9 million shares, according to InsiderScore / Verity. Sales were split across the fast-paced 680 sales, bringing the total to about $ 12.7 billion. Based on his 10% target, he has the potential to sell another 5 million shares. The closing price on Monday is about $ 966, which is over $ 4.8 billion.

However, it could be even higher in the end. Musk sells two types of shares. One is for paying taxes on the reward package and the other is for direct cash out or “pocket” sale.

The main reason Musk sells is to pay taxes on the exercise of options that will expire next summer. As part of the 2012 compensation package, Tesla’s CEO was given the option of 22.8 million shares to expire in August next year. When Musk began selling its shares, the options were valued at over $ 28 billion. His tax bill will be as much as $ 15 billion..

Since then, with his tax bill, stock prices have fallen by more than 20%. According to InsiderScore / Verity, Musk has sold 6.5 million shares to cover approximately 15 million optional taxes. To exercise all his options-perhaps because billions will remain on the table by expiring them-Musk will exercise an additional 7.8 million options and respond $ 4 billion to pay taxes. Will sell more.

From a tax standpoint, he could have another four or five block sales of 934,000 shares (the amount sold in each of the last tax-related sales) before completing that year. ..

The big unknown is how many additional shares he sells for cash or “pocket” income. So far, he has sold about 5.4 million shares in cash, regardless of option exercises or taxes. If all his sales from now on are tax related, he will only sell another $ 4 billion. Still, if he continues to sell in cash to help fund SpaceX and other ventures, that number could grow even higher.

Based on his 10% goal, Musk will only sell another $ 5 billion before the beginning of the year. But if he has other cash plans and needs, sales can be even higher.

Elon Musk’s share sale could total $ 18 billion by the end of the year

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