Musk sold 934,091 shares after exercising options to buy 2.1 million shares on Monday for $6.24 each. Tesla shares closed at $1,013.39. He must pay income tax on the difference between the strike price and the fair market value of the shares.
It is the second time in a week that the billionaire has exercised his stock option. Last Monday, he sold an additional 934,000 shares for $1.1 billion after exercising options to acquire nearly 2.2 million shares.
The two option-related sales were set up in September through a trading plan that allows company insiders to establish pre-scheduled trades on a schedule, the filings said.
At the end of 2020, he had an option to buy 22.86 million shares, which expire in August next year, according to a Tesla file.
On Nov. 6, Musk polled Twitter users about the sale of 10% of his stake, pushing Tesla’s stock price down after a majority on Twitter said they agreed to the sale. It was not clear how or if the trading plan was related to Musk’s Twitter poll.