Elon Musk’s tweets about selling billions worth of Tesla stock surprised investors, but he mentioned it months ago
  • Elon Musk requested his Twitter followers lately if he must peaceable sell billions in Tesla stock. 
  • He used to be going to attain it anyway. In September, he said he’d sell a “large chunk” of alternate choices. 
  • He is selling on story of expiring stock alternate choices and a drawing discontinuance tax invoice of now not lower than $10 billion. 

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Most CEOs of the enviornment’s biggest companies would consult a crew of enterprise advisors before deciding to sell a chunk of company stock. Tesla’s Elon Musk requested Twitter

On Saturday, Musk posted a poll asking his followers whether he must peaceable sell 10% of his Tesla shares. He made it appear love the honest used to be to screen he’s now not maintaining onto stock to handbook sure of paying taxes, but he said months ago that he would sell off Tesla shares before the year’s close. 

“Necessary is made now not too lengthy ago of unrealized positive factors being a technique of tax avoidance, so I point out selling my Tesla stock,” Musk tweeted alongside the poll. Almost 58% of respondents voted yes.

—Elon Musk (@elonmusk) November 6, 2021

Shares of Tesla fell as great as 6% in early Trading Monday following the poll’s results, but investors who had been paying consideration don’t were bowled over. Musk first talked about the upcoming sale right by intention of an interview at the Code Convention in September. 

“I genuinely comprise a bunch of alternate choices which can be expiring early subsequent year, so an infinite block of alternate choices will sell in Q4. Because I genuinely must or they’ll expire,” Musk said. 

Stock alternate choices awarded to Musk in 2012 for nearly 22.8 million Tesla shares at $6.24 each and each are stutter to spin out in August 2022. If Musk workout routines these alternate choices, he’ll realize a build of nearly about $30 billion if Tesla’s half tag stays around $1,200, where or now not it is hovering now. Musk will incur a tax invoice of now not lower than $10 billion, in step with Wedbush Securities, so or now not it is no shock the CEO is taking a test liquidate some shares. 

The poll came amid discussions of a Democratic proposal that would possibly perhaps perhaps well tax the wealth of the country’s richest people. Because the regulation stands this day, assets love shares are highest taxed when they’re provided (when positive factors are realized). That is allowed executives and founders love Musk to amass large fortunes whereas paying proportionally minute in profits taxes, at the same time as their wealth balloons. 

Musk, who’s now price extra than $300 billion after an chronicle Tesla stock rally, has criticized the proposal. It can most likely perhaps well stick him with a tax invoice totaling $50 billion over the following 5 years, The Washington Post reported. 

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