On November 6th Tesla’s Chief Executive Elon Musk posted a poll and asked his 63 million followers on Twitter whether or not he should sell his 10% shares in Tesla, which accounts for the majority of his estimated $281 billion fortune. Over 3.5 million people cast ballots, with over 58 percent voting “yes.”
Musk’s trust sold about 3.6 million Tesla shares worth $4 billion over the weekend, according to filings.
Roughly by 16%, the company’s shares dropped two days after the result came, before recovering some ground on Wednesday. With a stock market worth of more than $1 trillion, Tesla is the world’s most valuable carmaker.
Mr. Musk’s trust sold over 3.6 million Tesla shares, valued at $4 billion.
He’s also selling a different unit of Tesla stock through a strategy he started in September. More than 930,000 shares worth more than $1.1 billion were sold.
Tesla’s Frankfurt stock (TL0.F) was up 4.4 percent at the time of writing, recouping some of the week’s losses.
In pre-market trade in the United States, they were up 2.7 percent.
The records revealed that nearly a fifth of the stocks were sold as part of a pre-arranged trading strategy that began in September, far before Mr. Musk’s weekend social media statements about selling some of his holdings.
The sale of the remaining shares, however, had not been arranged, according to regulatory records.
Investors appear to be understating Musk’s action in terms of the stock’s prognosis, instead of focusing on robust car orders. In the third quarter of the year, the firm provided 241,300 electric vehicles and manufactured 237,823. It also recorded a net income of $1.62 billion for the quarter, up from $331 million a year before.
Tesla’s stock is already up more than 51% in 2021, thanks in part to a spike last month on the announcement of an agreement to sell 100,000 vehicles to Hertz, a rental car firm.