Tesla Inc TSLA revealed in a Twitter interaction on Wednesday that he does not sell the automaker’s stock unless he is left with no other choice.
What Happened: The entrepreneur made his comments in response to a tweet. Musk said the only time he sells Tesla stock is “when my stock options are expiring & I have no choice.”
Exactly. Only time I sell Tesla stock is when my stock options are expiring & I have no choice.— Elon Musk (@elonmusk) June 9, 2021
Btw, I will continue to pay income taxes in California proportionate to my time in state, which is & will be significant.
Musk also revealed that he had sold all his houses, except for one in Bay area, which is “rented out for events.”
Musk said in a separate tweet that he was working on “sustainable energy for Earth with Tesla & protecting future of consciousness by making life multiplanetary with SpaceX. Also, AI risk mitigation with Neuralink & fixing traffic with Boring.”
On Wednesday, Tesla shares closed 0.8% lower at $598.78 in the regular session and fell another 0.13% in the after-hours session.
Why It Matters: Musk's comments come in the aftermath of a controversy evoked over a ProPublica report that said several billionaire U.S. corporate executives, including the Tesla CEO, have paid little to nothing in federal taxes in recent years.
The billionaire entrepreneur heads Tesla and SpaceX, he is also the founder of the Boring Company and Neuralink.
Last year, Musk had announced on social media that he was selling “almost all physical possessions" and had said that he would “own no house.”
Musk unlocked $11 billion in stock options rewards in April this year. Each time the automaker unlocks a certain milestone, he is rewarded with stock options. The compensation plan is divided into 12 tranches of $1.69 million shares each.
In May, Tesla’s legal team was ordered by a Delaware judge to hand over documents related to the board-approved 2018 compensation plan for Musk in response to a motion filed by shareholders which accused the automaker of granting unjust enrichment to Musk.
Kimbal Musk, brother of Elon Musk, sold Tesla shares worth $25.6 million in February this year. He had also sold shares earlier in 2020 and 2019 and made $7 million from trading the company’s stock in April 2021.
As of press time, 19.63% of Tesla shares are held by insiders.
Photo by Heisenberg Media on Flickr
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.