• News
    • Stocks
    • Banks and Finance
    • Companies
    • Crypto
    • Forex
  • Videos
  • Articles
    • Forex CRM
    • Crypto Payments
    • Trading
    • Crypto Exchange Business
    • Forex Business
    • Fintech
    • Liquidity
    • FinTech Awards
  • Liquidity Providers List
  • Crypto Payment Providers

Dark Theme

Tesla’s Musk Is Selling Stock Again. We Think We Know When It Will End

Nov 25, 2021

Tesla’s Musk Is Selling Stock Again. We Think We Know When It Will End

Elon Musk, the CEO of Tesla, has resumed stock sales. All of the new deals, which were announced on Tuesday, took place on the same day. All of Tuesday's selling was part of a pre-arranged scheme to execute management stock options that were about to expire. Even though the option-related activity isn't surprising, investors are curious as to when Musk would stop selling.

It's not easy to tell, but the best guess is that Musk has a present for investors that he'll place underneath the Christmas tree.

On Tuesday, Musk exercised another 2.15 million stock options. That suggests he paid $6.24 for 2.15 million shares at the exercise price. He then sold 934,091 shares to pay income taxes, mostly. Management stock options are taxed as ordinary income, and the income is paid when management exercises his or her options.

Musk has exercised stock options issued as part of a 2012 compensation package for the fourth time. Each time Musk accepted his option, he sold 943,091 shares and bought fresh ones.

Musk is expected to execute around 26 million stock options in 12 distinct tranches, based on his previous behavior. For the past few weeks, he has been exercising roughly two tranches each week.

Musk has sold around 3.7 million shares worth $4 billion in 247 individual transactions through scheduled options exercises and stock trades. Musk, of course, sold some shares unrelated to management stock options after polling his Twitter followers on whether he should sell 10% of his Tesla (ticker: TSLA) stockholdings to pay taxes on unrealized capital gains faster.

Musk controlled around 170 million Tesla shares when he conducted the survey. A tenth of the quantity equals 17 million shares. Musk has also sold 4.8 million shares for $5.2 billion in 254 distinct transactions, in addition to stock option sales. Musk sold a total of 8.6 million shares valued at $9.2 billion in 501 transactions.

It's unclear if Musk counts the pre-arranged stock transactions tied to options as part of the 10% he advised selling. Multiple attempts for comment on Musk's sales have gone unanswered by Tesla.

Musk's starting ownership may be closer to 185 million shares if he included stock acquired via the exercise of the options as the figure on which to base his 10% sell. Outside of option-related sales, Musk would have to sell around 18.5 million shares. In addition to any options-related sales, Musk would have another 13 or 14 million shares to sell.

That's certainly the worst-case scenario for Tesla investors, because selling a large number of shares may build uncertainty and an overhang, with investors waiting for the selling to cease before investing more funds.

Since Musk's Twitter poll, Tesla's stock has dropped roughly 9%. Over the same time period, the S&P 500 has remained unchanged. The Dow Jones Industrial Average is currently down roughly 1%. The arithmetic to get to the theoretical 10% can be done in a variety of ways. However, it is reasonable to believe that Musk intended to sell around 17 million shares in total, including all transactions tied to option execution. If that's the case, there are another 7 million or so shares to sell through options exercises, as well as another 1 million shares to sell outside of options workouts.

Investors might expect another four weeks of selling at the present rate of stock sales and option exercises. Musk's sales should be completed before the holidays. If that's the case, the halt in sales will be a gift to Tesla supporters.

Subscribe Our Newsletter

The Future of Digital Currency Is Arriving Fast. Can the Fed Catch Up?
The Future of Digital Currency Is Arriving Fast. Can the Fed Catch Up?

When was the last time you paid for groceries or coffee using dollar bills rather than a swipe of a card or your phone? You (and I) are part of a disappearing breed if you still use cash.

Crypto
There Will Be No Student-Loan Apocalypse
There Will Be No Student-Loan Apocalypse

After almost two years of payments pause, over 20 million borrowers will be required to begin repaying their federal student loans in February. Due to worries about the Delta and Omicron versions and the economy, several Democrats have encouraged the Biden administration to prolong the payment freeze and interest waiver further.

Banks and Finance
Alexander

How to Spot Cryptocurrency Scams
The cryptocurrency world is still relatively new and uncharted territory. Many of the concepts at play in this new economy can be complex and difficult to understand. This can make it challenging for those who are new to the space to get a grasp on how everything works.

discover
What is the Liquidity Ratio?

Liquidity Provider

What is the Liquidity Ratio?

The notion of liquidity is exceptionally important in all financial markets, as traders/investors want to understand how many chances they have to buy and sell a certain asset by the market price.

Liquidity

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries b2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Tamta

    What Is Crypto Arbitrage Trading?

    https://liquidity-provider.com/app/uploads/2023/06/cover-1-800x540.jpg

    Tamta

    Guide to Craiyon: How To Use a New DALL-E Mini

    https://liquidity-provider.com/app/uploads/2023/06/cover-5-800x540.jpg

    Tamta

    Credit Cards vs. Debit Cards

    https://liquidity-provider.com/app/uploads/2023/06/cover-800x540.jpg

    Tamta

    Investing In Private Equity: What Should You Know?

    https://liquidity-provider.com/app/uploads/2023/05/cover-7-800x540.jpg

    Tamta

    What is Data Analytics? Techniques, Tools, Methodology, and More

    https://liquidity-provider.com/app/uploads/2023/05/cover-6-800x540.jpg

    Tamta

    Bitcoin Halving is Coming: What Does it Mean for the Crypto Market?

    https://liquidity-provider.com/app/uploads/2023/05/cover-4-800x540.jpg

    Tamta

    Crypto Token Supply From A to Z

    https://liquidity-provider.com/app/uploads/2023/05/cover-3-800x540.jpg

    Tamta

    What Is ChatGPT, And How Can You Use It?

    https://liquidity-provider.com/app/uploads/2023/05/cover-2-800x540.jpg

    Anton

    Trading on Autopilot: The Rise of Crypto Trading Bots

    https://liquidity-provider.com/app/uploads/2023/05/cover-1-800x540.jpg

    Tamta

    Crypto Investing vs. Crypto Trading: What’s The Difference?

    https://liquidity-provider.com/app/uploads/2023/04/cover-5-800x540.jpg

    Tamta

    Understanding Indexed Universal Life Insurance (IUL)

    https://liquidity-provider.com/app/uploads/2023/04/cover-4-800x540.jpg

    Tamta

    Best Investment Strategies For Beginners

    https://liquidity-provider.com/app/uploads/2023/04/image1-800x540.jpg

    Tamta

    Understanding Perpetual Futures: How Do They Work?

    https://liquidity-provider.com/app/uploads/2023/04/cover-3-800x540.jpg

    Tamta

    What Is A Bitcoin Stock-To-Flow Model? Beginner’s Guide

    https://liquidity-provider.com/app/uploads/2023/04/cover-2-800x540.jpg

    Tamta

    Best Decentralized Crypto Exchanges In 2023

    https://liquidity-provider.com/app/uploads/2023/04/cover-1-800x540.jpg

    Tatma

    Best High-Yield Savings Accounts For March 2023

    https://liquidity-provider.com/app/uploads/2023/04/cover-800x540.jpg

    Tamta

    Crypto Trading For Beginners

    https://liquidity-provider.com/app/uploads/2023/03/cover-8-800x540.jpg

    Tamta

    How To Make Money With Cryptocurrency

    https://liquidity-provider.com/app/uploads/2023/03/cover-7-800x540.jpg

    Tamta

    What Is A Candlestick Chart?

    https://liquidity-provider.com/app/uploads/2023/03/cover-6-800x540.jpg

    Constantine

    White Label Forex Software — Ultimate Guide on How to Choose The Best Industry Solution

    https://liquidity-provider.com/app/uploads/2023/03/cover-3-300x203.jpg

    Tamta

    Forex Trading: A Beginner’s Guide

    https://liquidity-provider.com/app/uploads/2023/03/cover-2-300x203.jpg

    Tamta

    How to Create a Cryptocurrency

    https://liquidity-provider.com/app/uploads/2023/03/cover-1-1-800x540.jpg

    Tamta

    Top Ten Richest People In The World, 2023

    https://liquidity-provider.com/app/uploads/2023/03/cover-4-1-300x203.jpg

    Constantine

    What’s at Stake? Here’s How to Avoid Scam Tokens

    https://liquidity-provider.com/app/uploads/2023/03/cover-5-300x203.jpg
    • News
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
    • Articles
      • Forex CRM
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
    [email protected]

    © 2023 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy