Tesla: Drops up 7% after Musk ‘pledges’ to sell 10% stake

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Tesla shares fell as much as 7% at the start of pre-conference trading to make up for losses close to 1% after the carmaker CEO Elon Musk pledged to abide by the result of a poll he did on Twitter about whether he should sell 10% of his shares.

In particular, on Saturday, Elon Musk launched a Twitter poll in which he asked his 62.5 million followers on Twitter if he should sell a 10% stake in the electric vehicle company, as proof that he does not use the company to evade taxes.

A staggering 3,519,252 users voted in Musk’s poll, with 58% of them voting in favor of the sale and 42% against.

Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock.

Do you support this?

— Elon Musk (@elonmusk) November 6, 2021

Musk said he would “abide by the result of this poll, whatever it is” and that he “does not get paid cash or bonuses out of nowhere. I only have shares, so the only way to pay taxes is to sell shares.”

Of the more than 48,000 who responded to Musk’s tweet, many expressed concern that such a sale would erode the value of the stock, hurting mid-sized investors who have re-benefited from the recent trend of shares to new highs.

The value of the Tesla stock jumped to a new high last week at $ 1,229.91 per share and rose 43% in October. The company’s market capitalization exceeded $ 1 trillion after Hertz Global announced plans on October 25 to order 100,000 Tesla vehicles. A few days later, Musk challenged the stock rally as he said no deal had been signed with Hertz.

Musk held approximately 170.5 million Tesla shares on June 30, so the sale of 10% of that equates to $ 21 billion worth of shares based on the share closing price on Friday 5/11/2021, according to Reuters calculations.

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Source From: Capital

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