(Businesshala) – Tesla Inc’s top boss Elon Musk sold another block of shares in the company for nearly $700 million, filings showed on Friday, as the billionaire takes advantage of a meteoric rally that pushed the electric carmaker’s value to $1. over a trillion.
The second round of massive stock sales this week comes just days after the world’s richest man and Tesla’s top shareholder tweeted that he would sell 10% of his shares if the social media platform’s users approved the move. Will give
Musk disclosed the additional share sale, which was valued at about $687 million, in a regulatory filing after selling nearly $5 billion in stock earlier in the week.
Musk’s trust sold 587,638 and 52,099 shares in multiple transactions on November 11, according to two separate filings on Friday.
In the first round of the sale, the filing revealed that Musk’s trust had sold approximately 3.6 million shares worth about $4 billion.
Musk marked the sale of stock at a stake of that size for the first time since founding the electric car maker in 2003, which by capital market standards was larger than most companies’ initial public offerings.
By flagging the move to Twitter users, he has also brushed off speculation of a cash-out as Tesla shares tumbled after their valuations hit record highs.
Tesla shares were down 1.5% at $1,050 in early trading and were headed for their first weekly decline in 12 weeks.
“Tesla investors are exhausted after the roller coaster ride. I don’t expect a big impact on the stock price after what we’ve already done,” said Fiona Cincotta, senior market analyst at Citi Index in London. Is.”
So far this week, Tesla has lost $157 billion in stock market value, more than the combined market capitalization of Ford Motor Co. and General Motors Co.
Despite the week’s losses, Tesla is still the most valuable US automaker. Its stock had soared over the past 11 weeks, underscoring demand from shares of electric vehicles (EV) makers.
Following Rivian Automotive Inc.’s blockbuster market debut on Thursday, the two most valuable US automakers are EV automakers.
Irvine, Calif.-based rival, Musk, tweeted Thursday: “There have been hundreds of automotive startups in both electric and combustion, but Tesla is the only US carmaker to reach high volume production and positive cash flow over the past 100 years. “
cover tax obligations
Musk sold another 934,000 shares for $1.1 billion in the first round of sales to cover tax obligations after exercising options to acquire approximately 2.2 million shares.
Nearly 800,000 options, or about 12% of Tesla’s open contracts, are set to expire at the end of the session on Friday, potentially adding to short-term volatility as traders and options dealers make adjustments.
Musk previously said he would have to exercise a large number of stock options over the next three months, which would create a huge tax bill. Selling some of your stock can free up money to pay taxes.
Prior to the sale, Musk owned a roughly 23% stake in Tesla, including stock options.