By on December 3, 2021

Tesla CEO Elon Musk has sold another 934,091 shares of the company, worth a hefty $1.01 billion, as a way to meet tax obligations related to the exercise of options to buy 2.1 million shares. But it’s just a drop in the bucket, as Mr. Musk’s offloading of Tesla stock has surpassed $10 billion overall. That’s roughly 10.1 million shares since the CEO asked Twitter users at the start of November whether or not he should dump 10 percent of his existing stake in the company following its big move to Texas. 

Despite being boasting the 7th largest average income of any state, California also happens to have the highest taxation rate on wealthier individuals. Conversely, Texas imposes no state income tax or capital-gains tax on individuals rich or poor.

While Musk has previously explained that it was the enhanced scrutiny placed on the automaker during early COVID restrictions that ultimately pushed him to move the company to Austin, Texas, it’s assumed financial issues played a relevant factor. The CEO had started speaking critically of California prior to 2020’s government restrictions, going so far as to suggest he would eventually relocate its HQ to Nevada or Texas. He confirmed it would be the Lone Star State this October.

According to Bloomberg, Musk would need to dump about 17 million shares (roughly 1.7 percent of all outstanding Tesla stock) in order to reach the full 10 percent. All told, that would cut over $2 billion of his tax bill as a result of his move to Texas from California in 2020.

From Bloomberg:

Tesla shares traded 0.6 [percent] higher as of 4:45 a.m. New York time Friday, before the start of regular trading. The carmaker announced earlier this week that its headquarters had officially moved to the factory it’s been building in Austin, Texas. Musk announced the company would move its home base out of California in October.

With a $284.1 billion fortune, Musk is richer than anyone else in the world, according to the Bloomberg Billionaires Index. His wealth has surged by $128.1 billion this year as Tesla shares have soared 54 [percent].

Since November 8th, Elon has exercised options to buy 10.7 million shares while selling over 10 million Tesla shares for around $10.9 billion. He will retain the option to buy about 10 million more shares at $6.24 each, though the window closes in August of next year.

[Image: Naresh111/Shutterstock]

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33 Comments on “Elon Musk Continues Selling Tesla Shares...”


  • avatar
    ToolGuy

    Dude knows how to sell high.

    • 0 avatar
      Lou_BC

      He’s gonna have to sell more if he’s happy with the plan to irradiate world hunger.

      • 0 avatar
        Lou_BC

        “irradiate’ #*[email protected]& spell check

        • 0 avatar
          C5 is Alive

          Well, it would solve world hunger…

          I’m reminded of an episode of the 1980s “Newhart” show that included British comic Simon Jones playing an advocate for a “carefully managed” nuclear war as a “bath for humanity.”

          Sounds like a better idea with each passing day.

          • 0 avatar
            slavuta

            Yea, lets start feeding poor so they can feel better, start multiply…

          • 0 avatar
            Arthur Dailey

            Well Slavuta as your favourite national leader admits to admiring Stalin, would you prefer another Holodomor?

          • 0 avatar
            slavuta

            Who created holodomor in Poland and slovakia?

          • 0 avatar
            Luke42

            Russia caused the holodomor.

            As I read the history, Russia had a choice between starving themselves, or taking Ukraine’s food. They chose the latter, and Ukraine starved.

            It is rightfully a national embarrassment for Russia. Especially in the light of the current events l: Russia is amassing troops on Ukraine’s border. Will Russia cause a second holodomor in the future?

          • 0 avatar
            slavuta

            You know what is pathetic – you keep spreading lies that Russia created some kind of holodomor. My grand parents lived in that area where according to you, they should of been dead.

            Famine was real. And Stalin’s collectivization was contributing to it. It happened in Ukraine, Russia, Kazakhstan.

            But you still can’t explain how Russia involved in these holodomors

            https://tinyurl.com/y4xrws8u
            https://tinyurl.com/49rk9jw6

            in Poland and Slovakia. You are specialist in holodomor so read ^^ newspapers of that time and tell me. One is Ukrainian American paper and another is Soviet paper posted article from Polish Ukrainian “Dilo”. Which writes that in Poland Ukrainians turn pro-communist, pro USSR due to poverty and hunger they live in under Polish leadership.

            Another article from American SWOBODA
            https://tinyurl.com/848kv9jx
            these Ukrainian famines now in 1934 but not in USSR.
            This asks same question
            http://joyreactor.cc/post/5008269

            And now – biggest Canadian lie
            https://tinyurl.com/ycxjk3fm
            This is ^^ a picture of holodomor monument in Canada. Interesting on many levels.
            1. Find KYIV, draw vertical line. On the left ethnic Ukrainian lived. On the right – russians
            2. No crosses on parts where Ukrainians died in Poland and Slovakia
            3. Crimea is in Ukraine? Why? Not until 1954

            Once you learn history you can conclude that nobody killed Ukrainians because more Russians died in SOVIET Ukraine than Ukrainians. And besides, when incidents of taking food from farmers happened, it was done by very Ukrainian Bolsheviks who were always the first activists together with Latvians, pro-communist forces. Don’t pretend that Ukrainians were not Stalin’s people. Ukrainians were used by all regimes. For Stalin they guarded GULAG and for Hitler – concentration camps.

  • avatar
    Undead Zed

    Must be a slow news day.

    • 0 avatar
      SCE to AUX

      Agreed. None of those numbers mean anything to anyone, but they do fit with the class envy narrative that is popular with this author.

      • 0 avatar
        mcs

        @SCE: I agree.
        One thing he’s doing is creating 10k jobs in Austin. American jobs. Also in an area where I have a lot of relatives.

        https://www.statesman.com/story/business/2021/03/31/elon-musk-says-teslas-austin-site-hire-ten-thousand-2022/4826859001/

        I think space issues were part of the move to TX as well. I just can’t think of any place in California where he could have built something as large as the Austin Complex. In addition to the Tesla facilities, Steel Dynamics build a huge steel plant in Sinton Tx. to support Tesla and SpaceX. Something that again couldn’t happen in California for a lot of reasons.

        Texas does have sales taxes, so the government coffers will see a lot of that money that’s being brought in.

  • avatar
    schmitt trigger

    I am happy, seriously, that the comments have not devolved into a blue state vs red state political slugfest.

  • avatar
    SoCalMikester

    how long ago was tesla at $6.24?

    • 0 avatar
      Turbo Is Black Magic

      Bigger question is how long until the stock drops 90% to what is should be?

      • 0 avatar
        Luke42

        If you price in a very bright future, I’d put their market cap about the same as one of the Global Big 3.

        That is somewhere between a 75% drop and a 90% drop from the current share price.

        I’ve made a distractingly large amount money on TSLA, but there’s no way I can justify the current share price.

        I’m a fanboy of the cars for sure (and EVs more broadly), but I kept my TSLA gains by being objective about the stock.

  • avatar
    aja8888

    I’m happy for Elon. I’m sure he can use the cash…

  • avatar
    aja8888

    I’m happy for Elon. I’m sure he can use the cash…

  • avatar
    FreedMike

    “Despite being boasting the 7th largest average income of any state, California also happens to have the highest taxation rate on wealthier individuals. Conversely, Texas imposes no state income tax or capital-gains tax on individuals rich or poor.”

    Worth noting: completely different situation when it comes to property taxes – property taxes in Texas are some of the highest in the whole country, and over twice what they are in California. The likes of Elon Musk probably don’t care, but the average homebuyer sure does.

    Ain’t no such thing as a free ride, ladies and gents.

    • 0 avatar
      IBx1

      Our monthly tax burden is 75% of our principal/interest mortgage payment. I’m not sure which is the lesser of the two evils, but even if I were retired and the house was paid off, I’d have to pay nearly half of what my existing housing expense was or else the government would get to take every penny of my equity.

    • 0 avatar
      dal20402

      Texas’s system amounts to the upper middle class subsidizing both the poor and the rich.

      California’s system, where longtime homeowners are essentially tax-exempt because of Prop 13, amounts to the poor and new arrivals subsidizing upper-middle-class longtime residents.

      Neither is optimal.

    • 0 avatar
      Crosley

      What gets lost in this is Texas property is way cheaper, so even at “twice” the rate, it’s probably a wash.

      The zero income tax for TX though versus CA at a high of 12.3% is a MASSIVE difference.

      Without question, most people are better off if the goal is to pay less taxes to move to TX.

      The people that bought a house 30 years ago and are on a fixed income, it might be cheaper (tax wise) to live in CA.

      • 0 avatar
        ktm

        Tesla better have their power supplies ready for when Texas loses its grid again. Even without income tax, the states get their money some way though that would help to explain why Texas has not invested any money into their infrastructure.

  • avatar

    Why we should care what Musk does with his money?

    • 0 avatar
      brn

      Knowing Elon, it’s very likely he’s using this money to start a new venture. Like him or not, the guy doesn’t stop.

    • 0 avatar
      slavuta

      Before traveling to space he could take care of public transport. You should like this

      https://www.curbsideclassic.com/bus-stop-classic/bus-stop-classics-american-ikarusnorth-american-bus-industries-from-hungary-to-alabama/

  • avatar
    slavuta

    Elon Musk sells Tesla shares?
    I would be worried if I heard that Elon Musk sells lemonade at the corner stand

  • avatar
    roadscholar

    Does Tesla make money on the cars they sell?

  • avatar
    andyinatl

    A GR model with fake exhaust outlets in the back bumper? I know it’s just me, but that would be enough for me to move on to something else. Why “teslafy” a perfectly fine hot hatch, Toyota???

  • avatar
    Crosley

    I have a love/hate thing going for Elon, but I did love he sort of pwned his critics this way by taking billions off the table as a fake virtue signal.

    And I’m in the camp that thinks Tesla is like 80%+ over valued. The whole EV space is about 90% over valued. Just not that much money in car production.

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