Tesla shares lost more than 7 percent in the premarket on Monday, November 8, because everything indicates that Elon Musk, founder and CEO of the company, will sell 10 percent of his stake in the electric car company.
This amounts to billions of dollars and would have a strong impact on the value of the company’s securities.
The decision would come (potentially, because Musk has not confirmed whether he will actually do so) after the founder of the firm himself published a survey on Twitter in which he asked his followers whether or not he should sell a tenth of the shares. of Tesla that he owns.
The result of the poll was a “yes” by 57.9 percent of the vote, so if Musk delivers on his promise, this Monday he should execute a portion of his positions at Tesla, which would undoubtedly drive the price down.
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?
– Lorde Edge (@elonmusk) November 6, 2021
The Twitter poll garnered more than 3.5 million votes.
Musk had said earlier that “in the next few months” he had to make key decisions about his shares in Tesla because he had to face tax costs. He said selling some of his shares could free up funds to pay those taxes.
“He was willing to accept either of the two results,” Musk said, after the vote ended.
As of June 30, 2021, Musk’s stake in Tesla amounted to 170 million shares and the sale of the 10 percent would equal about $ 21 billion according to the Wall Street shutdown on Friday, November 5, as calculated Reuters.
Including stock options, Musk has a 23 percent stake in Tesla, the world’s most valuable automaker today.
Musk’s poll must be analyzed within the framework of a proposal by Democrats in the United States Senate to tax the actions of billionaires and other assets to help finance the social spending promoted by President Joe Biden.
It’s all part of a billionaire’s strategy to pressure the White House not to move in that direction.