The Tesla stock sales would be part of a plan he put in place two months ago to exercise an even larger block of stock options before they expire next August. Company insiders, such as CEOs, can establish a stock sale plan so that sales are made automatically without being affected by non-public information they may have about the company.
The sales follow a Twitter poll he conducted on Nov. 6-7, in which he asked his followers whether he should sell 10% of his stake in the company to increase his tax base. But Monday’s sales were driven more by the need to exercise the stock options you have before they expire next August, along with the requirement that you pay taxes on those shares once you do.
The filings it filed with the Securities and Exchange Commission on Monday said the latest sales were made “solely to satisfy tax withholding obligations. [de Musk] related to the exercise of stock options to buy 2,107,672 shares as reported here. “And he said he was exercising the stock options, which had to expire in August 2022 to have a “orderly sale of shares related to the exercise of options“before they expire.
Do you want to sell Tesla?
Michael Burry, the man who gambled against the American economy and who made the movie The Big Bet has his own theories about what is happening and it has nothing to do with taxes.
On the one hand, Burry explained a few days ago that Elon Musk had sold those first shares because he needed to cover debts. This caused Tesla shares to drop 12%. But there the story does not stop, and it is that as the CEO of SpaceX has been entering money, Burry has been understanding what is really happening, or at least that is what he assures. For the investor, Elon Musk is not trying to raise cash, what he is doing is taking advantage of the incredible price that Tesla has right now to profit and sell the company. Yes, Burry says that the richest man in the world is looking to sell Tesla.
According to Insider, the short selling expert explained that one of the reasons he believes in this is because a year ago, when Tesla shares rose, Musk said the price was too high. But at that time they were worth only a fifth of what they are worth now. At present, however, what he is doing is selling.
In addition, he also pointed out that Elon Musk does not need cash after he sold his mansions, moved to Texas and saved a few taxes by leaving California.
Michael Burry’s theory makes even more sense considering his predictions for Tesla. See the company as a big asset bubble with a ridiculous share price and believes the company will crash on the stock market as many tech giants did with the dot-com bubble. Not for nothing had he bet against Tesla, although it seems that he stopped doing it a while ago.
Source From: Ambito
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