Tesla Stock Up 3% in Pre-market, Elon Musk Donates $5.7B in TSLA Shares to Charity Late Last Year
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Tesla Stock Up 3% in Pre-market, Elon Musk Donates $5.7B in TSLA Shares to Charity Late Last Year
Tesla Inc (NASDAQ: TSLA) stock continued with Monday’s gains with approximately 3.13 percent pocketed during today’s premarket. According to market data provided by MarketWatch and TradingView, Tesla stock was trading at around $902.84 as of February 15, 2022, at 5:14 a.m EST amid the news about Elon Musk’s donations of shares for charity.
TSLA shares are historically attributed with high volatility from speculative trading, almost similar to the crypto industry. However, the company’s stock market is also heavily affected by the electric vehicle industry and the fundamentals on the ground.
Tesla Shares for Charity
In one of the company’s updates, Reuters learned that Elon Musk donated over $5.7 billion worth of Tesla shares from November 19, 2021, to November 29, 2021. According to the United States Securities and Exchange Commission (SEC), Musk donated 5,044,000 Tesla shares to charity late last year.
However, the filing did not disclose the exact name of the charity group, which received the donation. The move by Musk, who is one of the world’s wealthiest people, is taken as a tactic to save his wealth from taxes. Moreover, the Biden administration has cracked down on billionaires who have historically evaded tax.
“His tax benefit would be huge. He’d save between 40% and 50% of the $5.7 billion in tax, depending on whether he could take the deduction against his California income and he’d avoid the gains tax he would have to pay if he sold the stock,” Bob Lord, an associate fellow at the Institute for Policy Studies who studies tax policy, said.
Tesla Shares and Elon Musk Unexpected Moves
Tesla shares are significantly affected by Elon Musk’s daily activities, particularly those pertaining to his leadership in the EV giant. Furthermore, besides being the company’s top boss, Musk is also one of the company’s whales investors
Musk has been witch-hunted by the Biden administration over his past tax evasion tactics. Late last year, approximately 3 million of Musk’s followers voted for him to sell 10 percent of his Tesla stock to cater for the unrealized gains.
Following the outcome of the poll, Musk sold approximately $16 billion of his stake in Tesla. Tesla shares saw a significant increase in volatility during his stock selling spree.
On the brighter side, the billionaire has donated the funds to charity, expected to make a huge difference in selected peoples’ lives. Moreover, Musk will retain some privileges over how the funds are used, despite the donation being 100 percent irrevocable.
In another charitable deed, Musk offered $100 million to anyone with a plan and technology to remove carbon from the atmosphere.
Tesla shares are up approximately 7.31 percent in the past year but have declined approximately 17%, and 13% YTD and the past three months respectively.
Tesla Stock Up 3% in Pre-market, Elon Musk Donates $5.7B in TSLA Shares to Charity Late Last Year