Musk asks followers on Twitter whether he should sell 10% of his Tesla stock

Nov 6 (Reuters) – Tesla Inc (TSLA.O) Chief Govt Elon Musk on Saturday requested his 62.5 million followers on Twitter in a poll if he may well per chance per chance additionally mute sell 10% of his Tesla stock.

The arena’s richest person had beforehand acknowledged he may well per chance per chance face a “big” tax invoice this year as he has to exercise a orderly sequence of stock alternatives coming due subsequent year.

“Repeat, I originate now not score a money salary or bonus from anyplace. I easiest enjoy stock, thus the map in which for me to pay taxes in my thought is to sell stock,” Musk acknowledged on Twitter on Saturday.

“Valuable is made honest lately of unrealized positive aspects being a strategy of tax avoidance, so I indicate selling 10% of my Tesla stock,” he acknowledged, relating to a “billionaires’ tax” proposed by Democrats.

Musk has criticized the proposal, which can per chance per chance per chance have an effect on 700 billionaires and impose taxes for lengthy-length of time capital positive aspects on tradable resources, whether or now not or now not they’ve been purchased.

Musk acknowledged that he will abide by the outcomes of the poll, whichever map it goes.

The poll purchased shut to 2 million responses in seven hours after he posted it, with 55% of respondents approving the proposal to sell the shares. The poll is scheduled to total spherical 3 p.m. ET (2000 GMT) on Sunday.

Musk’s shareholding in Tesla comes to about 170.5 million shares as of June 30 and selling 10% of his stock would amount shut to $21 billion in step with Friday’s closing, in step with Reuters calculations.

Tesla Inc CEO Elon Musk speaks onstage at some level of a shipping tournament for Tesla China-made Model 3 automobiles at its manufacturing facility in Shanghai, China January 7, 2020. REUTERS/Aly Song/File Photo

‘STOCKS GO DOWN’

Musk has an technique to lift 22.86 million shares at $6.24 each, which expires on Aug. 13 subsequent year, in step with a Tesla filing. Tesla’s closing trace became as soon as $1,222.09 on Friday.

In September, Musk acknowledged he’s likely to pay taxes of over half the positive aspects he would make from exercising alternatives. He also pushed aside the chance that he would score loans with his Tesla shares as collateral. “Shares don’t consistently flow up. They flow down,” he acknowledged at the code conference.

Some Tesla board contributors, along side his brother Kimbal Musk, offloaded orderly numbers of shares after Tesla stock hit a account high leisurely October. be taught extra

Musk lately acknowledged on Twitter he’d sell $6 billion in Tesla stock and donate it to the World Food Program (WFP), provided the organization disclosed extra files about how it spent its money. be taught extra

His tweet raised some eyebrows in the arena of finance.

“We are witnessing the Twitter plenty deciding the tip outcomes of a $25B coin flip,” Challenge investor Chamath Palihapitiya wrote on Twitter.

“Looking ahead to the day when the richest person in the arena paying some tax would now not depend on a Twitter poll,” Berkeley economist Gabriel Zucman tweeted.

Musk purchased into peril with a tweet about taking Tesla non-public in 2018.

Reporting by Ann Maria Shibu in Bengaluru and Hyunjoo Jin in San Francisco; Editing by Alistair Bell, David Gregorio and William Mallard

Our Requirements: The Thomson Reuters Have confidence Principles.

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