Musk: Is it a stunt?

[Joel]

Is he allowed to sell as much he wants? No limits in place?

[AsherO]

Is he allowed to sell as much he wants? No limits in place?

Isn’t it standard practice for insiders to provide advance notice of intent to transact so they don’t get accused of insider trading? (I know Musk doesn’t care for standard practice...)

[aygart]

They need to file an SEC-4

[AsherO]

I would imagine he will be smart enough to sell with a strategy to avoid a crash.

It is not like he will sell all in one sale.

I don't think there's any way to offload that many shares within a short while without it affecting the price significantly, at least not for a short while.

[aygart]

I don't think there's any way to offload that many shares within a short while without it affecting the price significantly, at least not for a short while.

Funds do it all the time

[aygart]

CNBC: Elon Musk faces a $15 billion tax bill, which is likely the real reason he's selling stock.
https://www.cnbc.com/2021/11/07/elon-musk-faces-a-15-billion-tax-bill-which-is-likely-the-real-reason-hes-selling-stock.html

[PlatinumGuy]

CNBC: Elon Musk faces a $15 billion tax bill, which is likely the real reason he's selling stock.
https://www.cnbc.com/2021/11/07/elon-musk-faces-a-15-billion-tax-bill-which-is-likely-the-real-reason-hes-selling-stock.html

He can easily get non-recourse loans at 0.5% and avoid the capital gains tax he would incur by selling

[avromie7]

I don't think there's any way to offload that many shares within a short while without it affecting the price significantly, at least not for a short while.

the number of shares he's selling is about half of the daily volume. If he dumped it all on a quiet day, it would significantly affect the stock price, but if he spreads it out a bit you would never know.

[Joe4007]

the number of shares he's selling is about half of the daily volume. If he dumped it all on a quiet day, it would significantly affect the stock price, but if he spreads it out a bit you would never know.

The concern here isn't the oversupply of shares. It's the concept of the man-behind-everything believing the stock is overvalued at these levels, notwithstanding the narrative he wraps the sale in.

[aygart]

He can easily get non-recourse loans at 0.5% and avoid the capital gains tax he would incur by selling

One of us is misunderstanding how that works.

[CountValentine]

6% drop?

[ExGingi]

He can easily get non-recourse loans at 0.5% and avoid the capital gains tax he would incur by selling

The only way he avoids the tax is if he lets the options expire without exercising them. Even at a combined 54% tax rate, why in the world would he do that? Would that put him over the threshold for Child Tax Credits, FAFSA, Medicaid, or any other benefit (beyond the pure tax)?

https://www.investopedia.com/managing-wealth/get-most-out-employee-stock-options/

[Abey]

The only way he avoids the tax is if he lets the options expire without exercising them. Even at a combined 54% tax rate, why in the world would he do that? Would that put him over the threshold for Child Tax Credits, FAFSA, Medicaid, or any other benefit (beyond the pure tax)?

https://www.investopedia.com/managing-wealth/get-most-out-employee-stock-options/

Its incredibly funny how he does these things just to mess with people when he clearly said at code conference that he has these expiring options that were structured in such a way that he has to sell them or lose them yet people just jump to being mad… that’s also probably the reason he moved to Texas

[ExGingi]

Its incredibly funny how he does these things just to mess with people when he clearly said at code conference that he has these expiring options that were structured in such a way that he has to sell them or lose them yet people just jump to being mad… that’s also probably the reason he moved to Texas

Except that it seems based on the article that CA still gets to tax the options because they were granted when he was a resident of CA.

[aygart]

Except that it seems based on the article that CA still gets to tax the options because they were granted when he was a resident of CA.

Yes, but there are still the future options.

[ExGingi]

Yes, but there are still the future options.

Absolutely.

Taxes are a major reason TX and FL are seeing positive migration.

[Abey]

Except that it seems based on the article that CA still gets to tax the options because they were granted when he was a resident of CA.

There is such a proposal in CA to prevent the runaways but to my knowledge is not yet law and as such Elon will be taxed at the time of exercising at which he’s a Texas resident

[Abey]

He can easily get non-recourse loans at 0.5% and avoid the capital gains tax he would incur by selling

The way it was structured is exercise or lose it, I’m not a tax attorney but that is my limited understanding from what I read. This is all Elon just messing with people 

[ExGingi]

There is such a proposal in CA to prevent the runaways but to my knowledge is not yet law and as such Elon will be taxed at the time of exercising at which he’s a Texas resident

CNBC: Elon Musk faces a $15 billion tax bill, which is likely the real reason he's selling stock.
https://www.cnbc.com/2021/11/07/elon-musk-faces-a-15-billion-tax-bill-which-is-likely-the-real-reason-hes-selling-stock.html

The options expire in August of next year. Yet in order to exercise them, Musk has to pay the income tax on the gain. Since the options are taxed as an employee benefit or compensation, they will be taxed at top ordinary-income levels, or 37% plus the 3.8% net investment tax. He will also have to pay the 13.3% top tax rate in California since the options were granted and mostly earned while he was a California tax resident.

[Abey]

Question is if it counts when exercised or granted? Again I’m not an attorney, I just don’t think the TX move was coincidental 🤷‍♂️