Tesla stock fell as high as 11% during mid-day trades on Tuesday. This extends losses to a second dayFollowing Elon Musk’s weekend proposal to sell 10% of his shares in electric vehicles, CEO Elon Musk decided to do so.

It is expected that the stock will drop the most this year. This comes following a nearly 5% decline on Monday. However, the overall trend has been mostly up for the year. Overall, Tesla shares are up more than 47% in 2021 and have more than doubled from one year ago, as the company reported improved automotive margins and navigated a chip shortage to ramp production while competitors faltered.

Current and former board members including chairwoman Robyn Denholm, Elon Musk’s brother Kimbal Musk, Ira Ehrenpreis and Antonio Gracias have also offloaded hundreds of millions of dollars worth of Tesla shares since Oct. 28 after Tesla’s market cap surpassed $1 trillion.

Musk was given a large options package as part a 2012 CEO performance plan. Musk doesn’t receive a salary nor a cash bonus. His wealth is derived from stock options and the gains Tesla shares make. At $6.24 per shares, the 2012 award consisted of 22.8 million shares. They expire Aug. 13, 2022.

Additional options are available from the 2018 unprecedented CEO pay package.

The iconic CEO has pledgedAt least 92,000,000 of his Tesla shares will be sold to creditors for cash borrowing. CNBC reported that Musk might want to sell shares in order to repay his debt. He could also face a $15 billion tax bill if he exercised his options and sold shares.

This is a developing story. Keep checking back for more updates.

–Yun Li contributed this article