Elon Musk certainly did not want your opinion on his $ 5B Tesla stock sale

Elon Musk certainly did not want your opinion on his.jpgsignature29b2a8ab0e2447293b4f8b6eb3bfd2c3

The world almost turned upside down when Elon Musk went over the weekend Twitter whether it should sell 10% of its investment in Tesla. Given his preconceived notions, it is not uncommon for the billionaire to ask random people on a social network about sensible financial advice.

Musk sold nearly 3% of its shares - 4.5 million stocks worth nearly $ 5 billion - over the past few days. This sale led everyone to believe that he had actually heard of the Twitterati and made the decision. Crazy, right?

But like Newley Purnell at the Wall Street Journal notes, Musk's sale was pre - planned - to some extent at least. This sale was necessary to meet tax obligations.

A document filed with the Securities and Exchange Commission (SEC) confirms this Musk was just using a pre-set trading plan that allowed him to sell his stock at a scheduled time. As WSJ explained in the story, these 10b5-1 plans allow company owners to sell stock at a predetermined price and date, measured by a formula.

It is important to note that, out of $ 5 billion, only part of the sale was predetermined. Reic e 3.5 million shares worth over $ 3.88 billion after the weekend. This move was not pre-planned or scheduled.

So, yes, Musk theaters took to Twitter to make the sale look like an emergency decision like a McDonald's order after it got high on the night. But it turned out to be a measured and pre-planned financial decision after all. Meh.

While the sale of the acclaimed entrepreneur's stock has gained more publicity for him than he may have needed, he has caused Tesla's stock to fall by over 13% in the past five days. Not good for the shareholders.

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You can check out SEC filing here.

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