Daily Management Review

Musk's fortune rises by $10bn on news of his $5bn share sale


Elon Musk has sold some of his Tesla shares for the first time in five years. He got rid of $5bn worth of securities in three days, with the sale of some of them planned well in advance of the Twitter followers' survey. As Tesla shares recovered from the collapse, the entrepreneur's fortune rose by $10bn in a day.

Daniel Oberhaus
Daniel Oberhaus
The richest man in the world, Elon Musk, has sold $5 billion worth of Tesla stock since Monday, November 8, Bloomberg writes, citing documents filed with the Securities and Exchange Commission. Including Monday, Musk sold a $1.1 billion block of shares in a deal that had been planned since mid-September, CNBC reported. The rest of the deals took place on Tuesday and Wednesday, with no evidence that they were pre-planned, the SEC reports indicate, Bloomberg points out.

The Wall Street Journal writes that Musk sold a total of about 4.5 million Tesla shares worth about $5 billion in three days, from November 8 to 10. Musk sold 1% of his assets on Monday and about 2% more on Tuesday and Wednesday. Musk sold the shares to meet tax obligations related to the exercise of options on them.

Since Tesla went public in 2010, Musk has only sold shares twice. In 2016, he sold 2.7 million shares for $593 million to pay taxes on the options he exercised. In 2010, he sold just over 1.4m shares for $24m before taxes.  

Tesla shares lost more than 15% of their value in two days after the billionaire took a poll on the possibility of selling a 10% stake in Tesla. They were up 4.3% on Wednesday, 10 November. Musk's fortune has risen by $10.6bn thanks to this, according to Forbes Real-Time ranking, which is updated in real time. The day before the collapse of Tesla shares, the fortune of the richest businessman in the world, the head of Tesla reduced by $33.3 billion.  

source: cnbc.com, forbes.com