(Bloomberg) — Tesla Inc. rose after Chief Executive Officer Elon Musk said he’s sold enough stock to make his total sales about 10%, removing a key overhang on its shares.
The electric-vehicle maker jumped as much as 4.3% Wednesday morning in New York after Musk said in an interview with the satirical website Babylon Bee that he had sold enough of his Tesla stock to reach a target of reducing his stake in the company. This would cover an estimated tax bill of more than $10 billion on stock options he’s expected to exercise.
“This declaration by Musk removes an overhang on the stock with selling pressure and negative perception issues now removed and the focus back on fundamental drivers for the Street,” Wedbush analyst Dan Ives wrote in a message. “Some good news after a dark few weeks for the Tesla bulls.”
Musk’s sales of shares had put pressure on the stock, which peaked just before he took an over-the-weekend Twitter poll last month on whether he should reduce his holding. They’ve tumbled about 24% through Tuesday since closing at a record high on Nov. 4, dragging the company’s market value back below the $1 trillion-level.
The latest regulatory filings show Musk has sold yet more shares in Tesla for $528 million, taking the total to around 13.5 million shares for about $14.1 billion. His comments to Babylon Bee suggest he has since disposed of even more stock.
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