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

By Ann Maria Shibu and Hyunjoo Jin

(Reuters) -Tesla Inc Chief Executive Elon Musk on Saturday asked his 62.5 million followers on Twitter in a pollif he need to promote 10% of his Tesla stock.

The sector’s richest particular person had beforehand talked about he would possibly presumably well face a “big” tax invoice this year as he has to exercise a attention-grabbing quantity of stock alternatives coming due subsequent year.

“Display camouflage, I build no longer raise a money salary or bonus from wherever. I finest include stock, thus essentially the most easy formulation for me to pay taxes in my thought is to promote stock,” Musk talked about on Twitter on Saturday.

“Important is made recently of unrealized gains being a approach of tax avoidance, so I point out selling 10% of my Tesla stock,” he talked about, referring to a “billionaires’ tax” proposed by Democrats.

Musk has criticized the proposal, which would have an effect on 700 billionaires and impose taxes for lengthy-duration of time capital gains on tradable sources, whether or no longer or no longer they’ve been supplied.

Musk talked about that he’ll abide by the results of the ballot, whichever formulation it goes.

The pollobtained approach 2 million responses in seven hours after he posted it, with 55% of respondents approving the proposal to promote the shares. The pollis scheduled to complete around 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 quantity shut to $21 billion in step with Friday’s closing, in accordance with Reuters calculations.


Musk has an formulation to steal 22.86 million shares at $6.24 each and each, which expires on Aug. 13 subsequent year, in accordance with a Tesla submitting. Tesla’s closing trace turn out to be $1,222.09 on Friday.

In September, Musk talked about he is doubtless to pay taxes of over half of the gains he would fabricate from exercising alternatives. He also pushed aside the likelihood that he would raise loans along with his Tesla shares as collateral. “Stocks build no longer constantly breeze up. They breeze down,” he talked about on the code conference.

Some Tesla board participants, including his brother Kimbal Musk, offloaded attention-grabbing numbers of shares after Tesla stock hit a list high dull October.

Musk recently talked about on Twitter he’d promote $6 billion in Tesla stock and donate it to the World Meals Program (WFP), supplied the organization disclosed extra facts about the design it spent its money.

His tweet raised some eyebrows in the arena of finance.

“We are witnessing the Twitter heaps deciding the terminate results of a $25B coin flip,” Project investor Chamath Palihapitiya wrote on Twitter.

“Taking a gape forward to the day when the richest particular person in the arena paying some tax does no longer depend on a Twitter ballot,” Berkeley economist Gabriel Zucman tweeted.

Musk got into effort with a tweet about taking Tesla non-public in 2018.

(Reporting by Ann Maria Shibu in Bengaluru and Hyunjoo Jin in San Francisco; Making improvements to by Alistair Bell, David Gregorio and William Mallard)

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