Elon Musk Sheds $50 Billion From Net Worth, Sells $8 Billion Worth Of Tesla Shares And May Be Facing A MASSIVE Tax Bill

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splits: 21

Here is a fast breakdown of Elon Musk’s net worth over the past month:

  • October 21: $250 billion
  • October 30: $300 billion
  • November 1: $335 billion
  • November 4: $340 billion
  • November 9: $300 billion
  • November 14: $285 billion
  • November 18: $290 billion

That is fairly a curler coaster! His fortune jumped $90 billion from October 21 to November 4. At that time his $340 billion net worth formally crossed John D. Rockefeller’s 80-year record for richest person history. Elon then went down $55 billion by November 14. As of this writing, Musk’s his net worth is $50 billion decrease than his November 4 all-time excessive, however nonetheless $40 billion increased than the place it stood October 21.

At $290 billion, he’s nonetheless the richest person in the world by a mile. He is $86 billion richer than the second-richest individual on the planet, Jeff Bezos.

These fluctuations observe in lock step with Tesla’s inventory value. On October 21, TSLA closed at $894. It closed at $1,229 on November 4. On Wednesday November 17, it closed at $1,089.

And these fluctuations are at the very least partially associated to a few of Elon’s current Tweet… and taxes.

Final weekend Elon conducted a Twitter poll through which he requested folks to vote on whether or not or not he ought to promote 10% of his Tesla shares. On the time of the ballot, these shares had been price round $20 billion. Right this moment it is nearer to $18 billion.

When the polls closed, 3.5 million votes had been solid with 58% of voters casting their poll for YES… as in, YES Elon ought to promote 10% of his Tesla shares.

In response to the corporate’s most-recent SEC submitting, there are presently 1,004,264,852 whole shares of Tesla excellent. In response to a distinct current SEC submitting, Musk presently controls round 17% of the full shares excellent.

17% of 1,004,264,852 = 170,725,024 shares owned by Elon.

So if he sells 10%, he’ll be promoting round 17 million shares.

(Picture by PHILIP PACHECO/AFP by way of Getty Photos)

Because it seems, Elon’s Twitter ballot may need been a little bit of a ruse. As Robert Frank at CNBC first pointed out, Elon faces a $10+ BILLION tax invoice over the approaching months associated to inventory choices.

Elon doesn’t take a wage for his work as CEO of Tesla. As an alternative he’s compensated by inventory choices. Possibility grants which are used as worker compensation are handled as revenue by the IRS. Subsequently any revenue on the positive factors are taxable even when the receiver not really train (promote) the choices. Conversely, Elon’s founding shares – shares he has held because the firm’s formation – are NOT taxable till he sells them for a achieve.

Let me offer you a easy instance: Let’s fake I gave you 10 choices to purchase CelebrityNetWorth inventory at a $1 strike value. And as an instance CNW is buying and selling at $11 after they “vest.” The IRS desires its minimize of that $10 achieve proper now. So that you both have to chop a test to the IRS and maybe your state tax collector for roughly $4 OR if you happen to use a service like etrade you might select to cowl your tax invoice by promoting shares earlier than they vest. In our instance, etrade would promote one share and put aside the suitable sum of money for taxes.

Again in 2012 Elon was awarded 22.8 million shares at a strike value of $6.24 per share. The strike value is the value Elon has to pay when he workouts the choices. So if the inventory was buying and selling at $10, the distinction after $6.24 could be his revenue.

As we acknowledged beforehand, Tesla presently trades at round $1,089. Soooo his revenue on the 2012 grant is ($1,089 – $6.24)*22.8 million. That equates to a achieve of…

$24.68 billion

Since he was residing in California through the time these choices vested, Elon is dealing with an approximate 40% mixed long-term capital positive factors tax invoice. In different phrases, between the IRS and state of California Elon is probably going on the hook for round…

$10 billion

Not like my fake instance the place it was simple to give you $4 in your taxes, it is tough for most individuals to give you $10 billion in money that may be electronically transferred to the IRS or California Franchise Tax Board.

Subsequently, Elon was most likely going to promote a giant chunk of his Tesla shares whatever the consequence of his Twitter ballot.

And he is not losing any time with the share gross sales!

In response to regulatory filings, within the final week alone Elon Musk has offered round $8 billion price of his Tesla shares. For instance, on Monday of this week Elon exercised the choice to purchase $2.1 billion price of inventory. Concurrently he offered $930 million price of his shares to satisfy tax withholding obligations, in accordance with a securities submitting.

Would like to be the one that traces up these digital transfers 🙂


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