Hi every one, I do not know much about how American companies treat options that have been granted to employees, but in Europe / Denmark, the company usually has to go out and buy the shares in order to sell them to the employee who has been granted an option. What about Tesla and the call options that Elon Musk has to be exercised before August 2022? Will the shares be bought by Tesla on the market and resold to Elon Musk for $ 6.24? If they do - then it is probably correctly assumed that they use all their liquidity? They had $ 16 billion in liquidity at the end of Q3 2021.
According to https://finance.yahoo.com/quote/TSLA/key-statistics Code: Shares Outstanding(5) 1B Float(8) 815.73M 5) Shares outstanding is taken from the most recently filed quarterly or annual report and Market Cap is calculated using shares outstanding. 8) A company's float is a measure of the number of shares available for trading by the public. It's calculated by taking the number of issued and outstanding shares minus any restricted stock, which may not be publicly traded. Means, about 18% of the shares are not issued as float... So, IMHO I guess the company could pay him also from these non-float shares. But I admit I'm not a specialist in this field.
I have been reading the latest SEC filing and Tesla dosen't own any treasury stock - so it looks like they have to buy them on the market - and run out of liquidity. Why isn't anybody talking about this?