Tesla stock will be fine even if Elon Musk decides to dump 10% of his shares after ‘bizarre soap opera’ Twitter poll, analyst says
Tesla CEO Elon Musk stands in front of the company's Cybertruck.
Tesla CEO Elon Musk.

FREDERIC J. BROWN/AFP by technique of Getty Photos

  • A seemingly sale by Elon Musk of 10% of his stake in Tesla have to now not cause project for investors, mentioned Wedbush on Monday.
  • He owns 170.5 million shares, which would set up a 10% stake worth spherical $21 billion.
  • Musk had already counseled he was as soon as making an allowance for selling shares because of this of a pending tax invoice stemming from inventory alternatives.

Tesla CEO Elon Musk’s seemingly sale of as much as 10% of his stake in the electrical car maker have to now not be cause for project amongst investors, mentioned Wedbush on Monday after Musk ran a ballot about whether he should always sell that quantity.

Musk on Saturday asked his 63 million Twitter followers whether he should always sell 10% of his Tesla inventory. Musk owns 170.5 million shares, which would set up a 10% stake worth spherical $21 billion.

The closing tally of bigger than 3.5 million votes had 57.9% in favor of the sale and 42.1% against it, with Musk along side that he would abide by the results. Tesla inventory on Monday fell as much as 7% ahead of the opening bell.

Wedbush analyst Dan Ives in a Monday sign mentioned it was as soon as already well identified that Musk may maybe presumably be facing a “large tax invoice” from his 23 million inventory alternatives awarded in 2012 that occupy vested and expire in August 2022 and that the CEO he was as soon as going to sell some inventory before the stay of the year.

“Lately Musk owns roughly 23% of Tesla and it was as soon as seen by many on the Aspect motorway that he would sell as much as ~5%/6% of his possession stake, with 10% being a increased amount that may maybe presumably well also shock some investors but by some means or now not it is a digestible amount we’re now not overly inquisitive about,” wrote Ives.

“We would reasonably Musk rip the band-aid off now and sell this half of inventory in desire to it lingering over the next year and feeding into any non-foremost endure thesis on the story,” he mentioned.

Musk urged the Code conference in September: “A huge block of alternatives will sell in Q4 – because of I in fact occupy to or they will expire.” He seemingly faces a tax invoice of roughly $15 billion on his inventory alternatives, in accordance to CNBC calculations.

Musk framed his Twitter pollspherical a proposed “billionaires’ earnings tax” – a tax proposal from US Democratic Sen. Ron Wyden on unrealized beneficial properties that by some means was as soon as rejected from the infrastructure invoice passed by Congress, in share because of this of pushback from moderate Democrats.

“Basically speaking, Tesla remains in pole build to pressure this EV adoption curve to the next level each domestically and globally with Musk & Co. main the diagram,” mentioned Ives in reiterating Wedbush’s outperform rating on Tesla inventory.

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