Tesla’s Musk exercises all of his stock options expiring next year

Tesla CEO Elon Musk attends the inauguration ceremony of the Tesla Gigafactory in Shanghai, China on January 7, 2019. REUTERS / Aly Song / File Photo

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San Francisco, Dec. 28 (Reuters) – Tesla Inc (TSLA.O) chief executive Elon Musk exercised all of his options expiring next year, marking the end of his share sales that triggered a drop in the most valuable stock price in the world. Car manufacturer.

Musk said last week that he would meet his goal of selling about 10% of his Tesla stake “after the $ 10 billion in pre-programmed sales are over,” likely referring to his option-linked stock sales. Read more

Since early November, he has exercised options expiring next year and sold part of Tesla’s shares to pay taxes under a “rule 10b5-1” trading plan put in place in September.

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With the exercise of options on 1.6 million shares on Tuesday, he exercised all options on 22.8 million shares, which are due to expire in August. He also sold 934,090 shares for $ 1.02 billion to pay taxes, according to the documents.

“This 10b5-1 rule trading plan was completed on December 28, 2021,” Tesla said in documents filed Tuesday.

Tesla shares lost about a quarter of their value after Musk asked his Twitter followers in November whether he should sell 10% of his holdings. They rebounded to $ 1,088.47, but are still below the closing high of $ 1,229.91 in November.

NEAR 10% TARGET

Musk has so far offloaded 15.7 million shares of Tesla, approaching the 10% stake the billionaire has pledged to sell.

Of the 15.7 million shares, 10.3 million were related to the exercise of options. Musk sold an additional 5.4 million, capitalizing on Tesla’s strong recovery.

It has offloaded $ 16.4 billion in shares since early November, when it announced it would sell 10% of its Tesla shares if Twitter users agreed.

The Twitter poll came two days after Tesla shares hit an all-time high following a rally sparked by an order for Tesla cars from rental company Hertz.

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Reporting by Hyunjoo Jin; Editing by Stephen Coates

Our Standards: Thomson Reuters Trust Principles.

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