Part 9/11:
Speculation has surged that Musk might execute a tranche of share sales to navigate upcoming tax obligations. A recent article by Bradford Ferguson suggests Musk could sell Tesla stock as soon as December 6, leveraging a tax code provision known as Section 83(b). This provision allows Musk to prepay taxes on stock options, potentially saving billions.
If Musk elects this option, he could pay approximately $15 billion in taxes at current valuations—arguably a prudent move, given Tesla’s potential to surpass $8 trillion in market cap. Critics argue some complexities in tax law make this a nuanced decision, but many see it as a bullish signal, implying Musk's unwavering confidence in Tesla’s future growth.