Musk has sold the stock worth $6.9 billion in the company in less than a week. Some of the shares were sold to cover tax obligations arising from the exercise of stock options.
The company’s share prices were highly impacted by the sell-offs. In a week’s course, Tesla stock plummeted 15.4%, putting the stock’s worst one-week performance in 20 months on the bourses. Except for dips in February and March 2020, when the coronavirus pandemic sent shock across stock markets, this was Tesla’s worst week ever.
On the dashboard of Quantale, the social engagement for the stock amongst the users of Twitter and Reddit sank more than 39% combined with an increase of nearly 12% in the trading volume.
A total of 25.21 million shares of the stock exchanged hands on Friday, 2.02 million above the average of 23.19 million. Tesla’s Market Cap as of November 12, 2021, stands at $1037.82B.
The stock closed its Friday’s intraday at $1033.42, down 2.83% from its previous day’s close and down
The market value that Tesla lost this week is around $187 billion, more than the combined market capitalizations of Ford Motor Co and General Motors Co.
On Nov. 7, Musk took to Twitter and asked his 63.5 million Twitter followers to vote in an opinion poll on whether he should be selling 10% of his Tesla’s holdings or not. He added, the opinion poll will determine the future of his Tesla holdings. However, according to financial documents submitted earlier this week, some shares of the stock were earmarked to sell regardless of the poll’s conclusion.
Musk asked on Twitter, “Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock”, to which 57.6% voted “Yes”.
Musk had previously said that the sale of “a significant block” of his options in the fourth quarter is on the cards. When Musk appeared at the Code Conference in September, he claimed that by the time his Tesla stock options expire, his marginal tax rate will be over 50%.