Home / Technology / Elon Musk exercises Tesla options, pays $50 million taxation check with possess cash

Elon Musk exercises Tesla options, pays $50 million taxation check with possess cash

Tesla Motors Inc. Chief Executive Elon Musk has increasing his investment in a electric-car maker, regulating some-more than $50 million of his possess income to cover a taxes on shares that cost him reduction than $7 apiece.

Musk exercised and hold 532,000 Tesla

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 stock options this week, adding to his position in a electric-car maker, that amounted to 21.7% of a association as of August, according to FactSet. According to an SEC filing detailing a transaction, Musk now owns somewhat some-more than 28.9 million shares, that would be value some-more than $5.5 billion during Friday’s shutting price.

Despite his already healthy investment in Tesla, Musk did not sell shares in sequence to compensate a practice cost for a options nor for taxes, instead regulating his possess cash, a Tesla matter explained. Elon did not sell any shares even yet he had to compensate some-more than ($50 million) in taxes in tie with a exercise,” a Tesla orator pronounced in an email.

Musk owned a right to practice a options during their value on Dec. 4, 2009 — before Tesla went public. They were labelled during $6.63, according to a SEC filing. That is reduction than 3.5% of a stream going rate for Tesla shares, that sealed Friday during $191.20.

Tesla pronounced Musk also used money to compensate a practice price, that would have been somewhat some-more than $3.5 million in sum for batch value some-more than $101 million.

Musk is a vital financier in Tesla as good as SolarCity Corp.

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 , a solar-installation organisation for that he serves as chairman, and he is also CEO and owner of SpaceX, a secretly hold space association valued during roughly $12 billion. Musk increasing his gamble on SolarCity in 2015 amid some debility for solar stocks, though his Tesla land are apropos a most incomparable apportionment of his personal portfolio.

Tesla shares edged aloft in late trade Friday after Musk’s investment was initial reported.

Article source: http://www.marketwatch.com/story/elon-musk-buys-tesla-shares-cheap-pays-hefty-tax-bill-with-own-cash-2016-01-29