Tesla CEO Elon Musk sold another $973 million in stock to pay taxes after exercising the option on Tuesday. Documents show that the electric car manufacturer’s stock rebounded in regular trading.
US Securities and Exchange Commission documents show that Musk bought 2.1 million shares worth $2.2 billion at Tuesday’s closing price and sold 934,091 shares for $973 million to pay taxes.
In the soaring sector led by Rivian Automotive and Lucid Group, Tesla rose 4.1% to close at $1,054.73. Since Musk began selling stocks last week, its market value has fallen by approximately $187 billion.
Rivian’s stock price has risen by 15%, and since last Wednesday’s initial public offering, the electric car manufacturer’s stock price has now risen by more than 120%.
Rivian disclosed in a document on Tuesday that its underwriters purchased 22.95 million additional shares, expanding the total size of the IPO. Including these stocks, Rivian’s market value increased to 153 billion U.S. dollars, surpassing Volkswagen by 14 billion U.S. dollars, and made the Irvine, California company the third most valuable car manufacturer in the world. Tesla’s market value exceeds the sum of the top 8 rival automakers.
Lucid’s stock price has soared by nearly 24% after the company said that its car reservations increased to 13,000 in the third quarter and it is confident that it will produce 20,000 upcoming Lucid Air sedans in 2022.
The rise in Lucid’s stock raised its stock market value to $90 billion, surpassing Ford and $1 billion less than General Motors.
In the past week, Musk sold approximately 8.2 million Tesla shares for approximately US$8.8 billion. These sales are almost half of his promise to sell his 10% Tesla shares on Twitter.
After proposing this idea in a Twitter poll, Musk began selling shares last week.
With increasing demand from Wall Street for electric car manufacturers, Tesla’s stock price has soared by more than 150% in the past 12 months.
Craig Erlam, senior market economist at OANDA, said: “There is still a lot of interest in buying because I still think investors ultimately see it as a stage and the callback as an opportunity.”
“If you ask me where the stock price will be in 6 months or 12 months? I would say that 20% higher than 20% lower is more likely.”