Elon Musk, the CEO of Tesla, Inc. (NASDAQ: TSLA) donated more than five million shares of the company worth $5.74 billion to a charity between November 19 and November 29, 2021, Reuters reported citing the EV maker’s SEC filing.
The valuation of the shares is based on the closing prices of the stock on the five days the donations were made.
Analysts said Musk would get a huge tax benefit as a person is not liable to pay capital gains tax on shares donated to charity.
Bob Lord, an associate fellow at the Institute for Policy Studies, said, “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.”
TSLA stock closed 5.3% higher on Tuesday but lost 0.5% in after-hours trading to end the day at $918.
Price Target
Based on 17 Buys, 7 Holds and 6 Sells, Tesla has a Moderate Buy consensus rating. The average TSLA price target of $1,107.50 implies 20.1% upside potential from current levels. Shares have gained 42.7% over the past six months.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into Tesla’s performance.
According to the tool, compared to the previous year, Tesla’s website traffic has registered a 36.6% decline in global visits year-to-date.
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