Sweet November is not turning out to be so sweet for Elon Musk as he is facing both criticism and praise for selling his Tesla (TSLA) stock and paying multi-billion dollars in taxes.
On Sunday 7th Nov, the Tesla CEO started a Twitter poll inviting everyone to vote on if he should sell 10% of his Tesla stock. Surprisingly, 57.9% of the total of 3,519,252 votes were in favor of selling his TSLA shares.
As Musk stated in a later tweet that he will abide by the results of this poll, he started selling his TSLA shares the next day. He sold both Tesla common shares and the ones he received as part of his performance package as the CEO of the company.
Till yesterday, Musk sold a total of 1,868,182 of his performance package exercised shares. Interestingly, he sold them in two equal batches of 934,091 on both Mondays after the poll results came in.
For the common shares, Musk has sold a total of 5,427,784 shares as of yesterday. This brings the grand total of sold Tesla shares by Elon Musk to 7,295,966 as of Monday 15th Nov 2021.
Dave Lee, who has been a Tesla investor since 2012 and is also a stock investment analyst with his own YouTube channel and a prominent following on Twitter thinks Musk is paying more taxes than he actually needs to at this time.
Dave explains in the following Twitter thread and podcast that it’s surprising that Elon Musk has chosen to pay a higher amount of taxes rather than opting for a lower number with his pattern of selling TSLA shares.
The Tesla share price did tumble during the last week as Elon Musk started to sell his shares for paying taxes and also probably his loans that he took out for personal expenses. But today, TSLA has started rallying again. As of this writing, a Tesla share is trading at $1,044.86 USD while the market closed at $1,013.39 on Monday yesterday.
Elon Musk also revealed that with time, his ownership of Tesla, Inc. is diluting. There are two main reasons for this dilution, the constant need for capital for growth and every Tesla employee getting stock after working 1 year at the company.
“I had majority control for the first 5 years or so of Tesla, but car companies need lots of capital, so now I’m around 20% or so, despite putting in as much as I could along the way,” he explained in a tweet.