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Monday, November 29, 2021

Elon Musk to sell 10 percent of his Tesla stock due to a tweet poll: Details here

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Tesla CEO Elon Musk in a tweet asked his followers if he should sell 10 percent of his Tesla stock, to which 57.9 percent of people voted “Yes.” “I was prepared to accept either outcome,” Musk said, after the voting ended. He also noted that he does not take any cash salary or bonus from anywhere, which is why stock is the only way for him to pay taxes. Also Read – Elon Musk’s Starlink could be a threat to Reliance Jio, to offer the cheapest broadband service in India

Musk had previously stated that he would have to exercise a large number of stock options in the next three months, which would create a big tax bill. Selling some of his stock options would help free up funds to pay the taxes. Also Read – Elon Musk Starlink sets up an Indian subsidiary, plans to apply for a license

Musk currently owns 170.5 million Tesla shares and selling 10 percent would amount to close to $21 billion based on the last market close, according to a report by Reuters.

This decision comes after US Senate Democrats unveiled a proposal to tax billionaires’ stocks and other tradeable assets. This will help finance the President’s social spending agenda and fill a loophole that has allowed billionaires to defer capital gain taxes indefinitely. Musk had earlier criticised the proposal saying “Eventually, they run out of other people’s money and then they come for you.”

Including stock options, Musk currently owns a 23 percent stake in Tesla. He also owns other valuable companies including SpaceX.

A week ago, Musk in a tweet had stated that he would sell $6 billion in Tesla stock and donate it to the United Nations’ World Food Program (WFP), if the organization disclosed more information about how it spent its money.

He has also stated that he does not want to borrow against stock to pay taxes, as the stock value could go down. Based on Tesla’s Friday closing price, one stock is worth $1,222.09. Note, Musk also has an option to buy 22.86 million shares at $6.24 each, which expires next year.





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