Elon Musk, the CEO of Tesla Inc (NASDAQ: TSLA), has sold an extra 934,090 shares valued $1.02B, as per an SEC filing. The billionaire’s investment in his electric vehicle auto manufacturer and also his solar company are included in the redistributed shares.
Additionally, Musk exercised options to purchase 1.6M Tesla shares at a striking value of $6.24 each. This was provided to him as part of a settlement package he received a little over 9 years ago. Tesla CEO Elon Musk’s stake in the company has increased from 170.5 million to over 177M shares after he exercised his options this quarter. As per the Wall Street Journal, that’s the case.
Elon Musk Trading Tesla Stock
After polling his tens of thousands of Twitter followers, Elon has been selling shares since 2nd week of November. This is partly to meet his upcoming tax obligations related to those choices. Elon is expected to pay nearly $11B in federal and California taxable revenue, which is perhaps the highest single individual tax payment in US history. He would receive nearly $23B in reward if he pays this tax burden. This will be in the form of August-expiring stock choices.
The billionaire had previously inquired if he must trade 10% of his Tesla stock, which a large bulk of Twitter users said affirmatively. Nevertheless, the Twitter sessions were not responsible for a large portion of the subsequent stock transactions. However, it was based on a strategy Musk announced in September.
Corporate insiders — CEOs – could trade their own stock under the SEC’s Rule 10b5-1 if certain conditions are met. This also involves an asset allocation strategy that has been announced in advance. Insiders must, nevertheless, disclose the nature of their intended trading executions ahead of time. This is to avoid future charges of insider trading.
Tesla’s Forecast for 2022
Heading into the new year, Tesla has a strong position. As per the Wedbush analyst Daniel Ives, the electric vehicle company’s stock has a nearly 30% upside in the next twelve months. Part of growth can be attributable to rising Chinese needs and new manufacturing openings in the United States and Germany. Ives predicted that component shortages will alleviate in 2022, letting Tesla to focus on meeting the increased demand in China. He phrased it like, China, where we predict would account for 40% of Tesla shipments in 2022, is the lynchpin of the comprehensive bullish hypothesis on the EV maker.
Ives also predicts that Tesla’s present production would treble by the end of 2022. The electric vehicle manufacturer currently has a manufacturing capability of 1M vehicles. He pointed out that the corporation is in the unusual position of having to accommodate rising demands. He says it himself that presently, Tesla is experiencing a first-class difficulty with demand exceeding supplies.
Tesla’s stock has risen over 54% in only 2021, valuing the electric vehicle firm at over $1T. It was also a crucial factor in Elon’s rise to the position of world’s wealthiest person. As per Forbes, his net worth has risen to over $275B. Elon is said to not be paid a salary or get any monetary bonuses from his two big enterprises, Tesla and SpaceX. Furthermore, until 2021, the vocal entrepreneur hadn’t traded a significant amount of Tesla stock. Before this point, everything he had done was take out large loans against a chunk of his Tesla stock.