Elon Musk Donated $5.7 Billion in Tesla (TSLA) Stock to Charity in November, Analyst Sees Huge Tax Benefits

February 15, 2022 7:05 AM EST

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Elon Musk donated 5,044,000 of Tesla (NASDAQ: TSLA) shares to charity from Nov. 19 to Nov. 29 in 2021, according to the filing with the U.S. Securities and Exchange Commission (SEC).

The donation totaled $5.74 billion, according to the closing prices of Tesla stock during the 5-day period when the donation was completed. The name of the charity which received the donation remained undisclosed.

The move came after Musk sold $16.4 billion worth of carmaker shares after publishing a poll on Twitter about selling 10% of his stake in the EV maker.

In the Twitter post, Musk said he would pay over $11 billion in taxes last year as his exercise of stock options was due to expire in 2022.

This means that Musk would gain significant tax benefits as shares donated to charity are not subject to capital gains tax.

"His tax benefit would be huge," Bob Lord, an associate fellow at the Institute for Policy Studies, told Reuters.

"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."

By Senad Karaahmetovic | [email protected]

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