Twitterati say ‘yes’ to Elon Musk’s 10% stake sale in Tesla

November 08, 2021 07:03 PM AEDT | By Aayush

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Twitterati say ‘yes’ to Elon Musk’s 10% stake sale in Tesla — Image source: Vitaliy Karimov, Shutterstock.com

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Highlights

Elon Musk took it to Twitter to decide whether he should have sold his 10% stake in Tesla to pay taxes on his capital gains.

The poll received votes of over 3.51 million Twitterati with the majority (57.9% votes) in favour of Musk’s decision.

Elon’s brother Kimbal Musk had dumped 88,500 shares of his Tesla holdings.

Elon Musk, the world’s richest person and Tesla CEO, conducted a Twitter poll on Saturday to ask fellow Twitterati whether he should have sold some of his holdings in Tesla to pay taxes. He tweeted, “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?”

The poll received votes of over 3.51 million Twitterati with the majority (57.9% votes) in favour of Musk’s decision. After the voting ended, he also twitted, “I was prepared to accept either outcome.”

Tesla charging station

Image Source: Blomst from Pixabay

As per the latest filing, Musk’s shareholding in Tesla is roughly about 17.22%, accounting for a total of 179.49 million shares. Selling a 10% stake would amount to approximately US$21 billion worth of shares, as per the last closing of US$1,222.09. If stock options are included, Musk owns around a 23% stake in Tesla, which recently entered the trillion-dollar club. He also holds a stake in other companies such as SpaceX, Starlink, etc.

Elon Musk said, “I do not take a cash salary or bonus from anywhere. I only have stock, thus the only way for me to pay taxes personally is to sell stock.” Gary Black, a portfolio manager at The Future Fund, is bullish on Tesla and said, “Musk's potential stock sale would lead to 1-2 days of modest selling pressure, but there would be solid institutional demand to snap up shares at a discount.”

Twitterati say ‘yes’ to Elon Musk’s 10% stake sale in Tesla

Recently, US Senate Democrats have introduced a proposal to tax unrealised gains from financial assets such as stocks of billionaires, a legal loophole which has kept them to defer taxes on capital gains indefinitely.

Elon’s brother Kimbal Musk had dumped 88,500 shares of his Tesla holdings, becoming the latest shareholder to offload a big chunk of Tesla shares. Recently, Musk also took it to Twitter to disclose, he is ready to sell US$6billion worth of his Tesla shares to donate it to the United Nations' World Food Program (WFP) to end world hunger if a plan is provided by the organisation.

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