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On February 12, 2021,Tesla (NASDAQ: TSLA) filed with the SEC a 13G filing stating that Elon Musk now owns 227,131,935 shares, which is 22.4% of the company's total shares, which makes him Tesla's largest investor.
Provide the following information regarding the aggregate number and percentage of the class of securities of the issuer identified in Item 1.
(a) Amount beneficially owned: 227,131,935 shares which includes (i) 170,492,985 shares of Common Stock held by the Elon Musk Revocable Trust dated July 22, 2003 and (ii) options to purchase 56,638,950 shares of Common Stock that are exercisable within 60 days of December 31, 2020. On August 28, 2020, the Issuer effected a five-for-one stock split of its Common Stock (the “Stock Split”). The share numbers reported on this Schedule 13G / A reflects the Stock Split.
(b) Percent of class: 22.4% (percentage ownership is calculated based on 959,552,475 shares of Common Stock outstanding as of December 31, 2020 and assumes that the shares of Common Stock underlying the stock options are deemed outstanding pursuant to SEC Rule 13d-3 (d) (1) (i)).
Thus, Musk currently owns $184.36 billion in shares, which exceeds the market capitalization of any Top 25 automaker except Toyota.
The purchase and ownership of shares of his own company demonstrate that Musk is confident in its economic prospects. The first time he invested personal funds in Tesla was in the amount of $6.35 million, in April 2004. He continued to give the company money for another three subsequent rounds between 2007 and 2012. Musk is confident in the success of Tesla, so now he continues to buy shares of his own company. He believes in Tesla's success, so boldly declares that, just as his money was the first investment that Tesla received, so they will be the last to be withdrawn. Musk said:
"Forgot to say one thing at Tesla annual shareholders meeting: just as my money was the first in, it will be the last out."
© 2021, Eva Fox. All rights reserved.
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Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.