Tesla CEO Elon Musk.
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Dec. 9, 2021, was a day that was watched closely by
investors. They wanted good news that would send shares higher. Instead, they got more Elon Musk stock sales.
Social-media-fueled speculation had bulls hoping 12/9 would bring potential good news ranging from a stock split to a new product. Tesla (ticker: TSLA) didn’t give any indication something was up. It was a case of the internet doing, well, internet things.
The only thing that happened was Musk sold more stock as part of a prearranged plan to exercise expiring management stock options. The Securities and Exchange Commission filings detailing the sales were released at roughly 8:20 p.m. Eastern time.
Musk purchased another 2.2 million Tesla shares for $6.24 apiece. He sold another 934,091 shares to pay taxes on the gains. Gains derived from management stock options are taxed like ordinary income when management exercises them.
Musk has purchased about 13 million shares by exercising his stock options and sold about 5.6 million of those shares to pay the taxes. He has exercised about half of the options received from a 2012 grant. Those options were due to expire in mid-2022.
At the current pace of exercise, there is about three weeks left before Musk will be done with those options. It’s difficult to know exactly when he will be done, though. Details of Musk’s prearranged plan to exercise just aren’t known. Tesla hasn’t responded to multiple requests for comment about Musk’s stock sales.
Musk sold another 5.4 million shares that weren’t a part of options grants. He asked his