Tesla shares fall after Twitter users vote for Musk to sell slice

Tesla shares were down about 3% on Monday after Twitter users voted in favor of Elon Musk’s proposal to sell about 10% of his stake in the electric car maker.

Musk, the richest man in the world, wrote on Twitter on Saturday that he would sell 10% of his stake in the company if users of the social network approved the proposal.

The poll published by Musk on Twitter received more than 3.5 million votes and 57.9% of people voted “Yes” to the proposed sale of the shares.

Musk had previously said that he would have to exercise a large number of stock options in the next three months, which would generate a large tax collection. The sale of part of the shares could free up resources for paying taxes.

“I only own stock, so the only way to pay taxes in person is to sell stock,” Musk wrote along with his research. “I am prepared to accept either option.”

Musk owned about 170.5 million shares of Tesla as of June 30, and a 10% sale would equate to about $21 billion based on Friday’s closing price, according to Reuters calculations. Including the options, Musk owns 23% of the automaker’s shares.

Musk’s tweet once again raises questions about whether he is complying with a 2018 agreement reached with the SEC (United States Securities and Exchange Commission) under which relevant tweets about the company must have legal approval before being published.

The SEC, which declined to comment on the matter, concluded that Musk violated the deal in 2019, prompting the agency to tighten the deal.

The billionaire, known for his Twitter jokes and lively interactions with followers, was fined $20 million by the Commission for posting on the social media in 2018 that it was considering taking Tesla private for $420 per paper, and which it already has. had guaranteed funding for it.

The SEC also asked him to step down as president of the company.