Elon Musk unloaded billions of Tesla stock — and still owns more than last year

SpaceX founder and Tesla CEO Elon Musk holds a helmet as he visits the construction web site of Tesla’s gigafactory in Gruenheide, in the vicinity of Berlin, Germany, May well 17, 2021.

Michele Tantussi | Reuters

Elon Musk unleashed a torrent of inventory gross sales, possibilities routines, tax payment profits and gifted shares last year totaling almost $22 billion. Nonetheless even soon after unloading so considerably Tesla inventory, he however owns a larger sized share of the corporation, many thanks to his compensation offer.

Musk marketed $16 billion in shares final yr and, in accordance to a submitting with the U.S. Securities and Exchange Fee Monday, gifted 5 million shares, which are worth almost $6 billion, to an undisclosed charity or recipient in November. The sales and items bring his full to about $22 billion — a mixture of tax payments, money in his pocket and the gift.

Still since of the nature of the selections exercises, Musk in fact concluded the yr with a more substantial ownership stake — and more shares — in Tesla. In 2012, Musk was awarded alternatives on 22.8 million shares worthy of about $28 billion very last fall when he commenced providing.

The way the solutions exercises do the job is that Musk to start with started out changing the 22.8 million solutions into shares. The options had a strike price tag of only $6.24, so he could spend $6.24 for each and every alternative and get a share of Tesla stock, which were being buying and selling at a lot more than $1,000 past slide.

With each and every options conversion, he would at the same time sell shares to shell out the taxes, considering that the selections are taxed as profits. Even as he was unloading billions of bucks worthy of of shares to fork out the taxes, he was accumulating an even more substantial quantity of inventory at the reduced alternatives selling price — consequently escalating his possession of the organization.

In overall, Musk marketed 15.7 million shares for $16.4 billion. Increase to that the gifted shares, and he unloaded a full of 20.7 million shares. Still he obtained 22.8 million shares through the selections workout — leaving him with 2 million much more shares in Tesla at the stop of the year. He at the moment owns 172.6 million shares, which presents him a 17% stake in the firm, earning him much and absent the solitary biggest personal shareholder.

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Musk kicked off his share activity with a poll on Nov. 6, telling his followers “Much is built lately of unrealized gains being a signifies of tax avoidance, so I propose advertising 10% of my Tesla stock. Do you support this?” Musk vowed to comply with the benefits of the poll, which finished up with 58% in favor of a sale and 42% against.

In the end, he produced fantastic on the assure of marketing 10% of his stake. But he received even extra back with alternatives, which gave him a round-trip-stock excursion that remaining him with billions in cash, the premier solitary tax payment in U.S. heritage and even more Tesla shares.

Musk’s ownership — and $227 billion fortune — is probable to skyrocket once again in the potential. His up coming big pay package, which could be even greater than the 2012 award, expires in 2028.