Elon Musk has sold his first block of Tesla shares since 2016, exercising some stock options and then selling a portion of that to raise the cash he'll need to pay taxes on the shares he acquired.
The options he exercised were about 9% of those he will need to exercise by August of 2022, or the option to purchase them will expire. But exercising those shares will result in a $1 billion federal tax bill, under the top federal income tax rate of 37%, with another 3.8% net investment tax on top of that.He also will face an unknown amount of state income taxes in California, even though he has relocated to Texas, where there is no state income tax.
2 million shares, the difference between the number of shares he acquired and the number he sold. Shares of Tesla rose 2.7% in after-hours trading following the filing.Elon Musk doesn't get paid, buy stuff or pay taxes like you doHe already owned 170.5 million shares outright before this transaction, worth $182 billion based on Wednesday's close. And even after exercising the options this week, he has already qualified for unexercised options to buy an additional 71.
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