Musk Asks Twitter Followers If He Should Sell 10% Of His Tesla Stock

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Tesla Inc Chief Executive Elon Musk asked his 62.5 million Twitter followers in a poll on Saturday whether he should sell 10% of his Tesla shares.

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The world’s richest person had previously said that he could face a “massive” tax bill this year as he has to exercise a large number of stock options that expire next year.

Please note that I do not receive a cash salary or a bonus from anywhere. I only own stocks, so the only way to pay taxes personally is to sell stocks, ”Musk said on Twitter on Saturday.

“There’s been a lot of talk lately that unrealized profits are a means of tax avoidance, so I’m proposing to sell 10% of my Tesla stock,” he said, referring to a “billionaires tax” proposed by Democrats.

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Musk has criticized the proposal, which would affect 700 billionaires and impose long-term capital gains taxes on marketable assets, whether they have been sold or not.

Musk said he will stick to the poll results in any way.

The survey received close to 2 million responses in seven hours after it was published, and 55% of those surveyed approved of the proposal to sell the shares. The survey is scheduled to end around 3 p.m. ET Sunday.

Musk’s stake in Tesla amounts to about 170.5 million shares as of June 30 and the sale of 10% of his shares would amount to about $ 21 billion by Friday’s close, according to Reuters calculations.

‘STOCKS DOWN’

Musk has the option to buy 22.86 million shares at $ 6.24 each, which expires on Aug. 13 next year, according to a Tesla document. Tesla’s closing price was $ 1,222.09 on Friday.

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In September, Musk said he is likely to pay taxes on more than half of the gains he would make from exercising the options. He also ruled out the possibility that he would borrow his Tesla shares as collateral. “Stocks don’t always go up. They go down, ”he said at the code conference.

Some members of the Tesla board, including his brother Kimbal Musk, dumped a large number of shares after Tesla shares hit a record high in late October.

Musk recently said on Twitter that he would sell $ 6 billion in Tesla stock and donate it to the World Food Program (WFP), provided the organization released more information about how it was spending its money.

His tweet raised some eyebrows in the world of finance.

“We are witnessing the masses of Twitter deciding the outcome of a $ 25 billion coin toss,” wrote venture investor Chamath Palihapitiya on Twitter.

“Waiting for the day when the world’s richest person to pay a tax doesn’t depend on a Twitter poll,” Berkeley economist Gabriel Zucman tweeted.

Musk got into trouble with a tweet about the privatization of Tesla in 2018.

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Reference-torontosun.com

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