Investors bracing for Elon Musk to sell part of his Tesla stock sent the stock plummeting on Monday morning.
The sale came after Musk posted a poll on Twitter asking users if he should get rid of a tenth of his stock.
Users voted yes by a margin of 58% to 42%, with more than 3.5 million votes cast.
Tesla shares were down 4.5% to $ 1,167.52 on Monday on pre-trade.
“I will respect the results of this poll, whatever it is,” Musk said. said on twitter when he started polling on Saturday.
After the results, he pledged to follow through.
“I was ready to accept either outcome,” he wrote.
The move comes after Musk expressed dissatisfaction with a proposal by Democrats on Capitol Hill to impose an additional tax on billionaire wealth to pay for social programs. The tax was not approved.
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Twitter Poll:Elon Musk is expected to sell 10% of his Tesla shares
He also has other reasons for selling stocks.
Musk has “a big tax bill due to his 23 million stock options granted in 2012 which vested and expire in August 2022 and he was going to sell shares before the end of the year,” said Wedbush Securities analyst Dan Ives in a study. Remark.
Musk owns around 23% of Tesla. If he keeps his promise to sell a tenth of his shares, he would still own more than 20% of the company, a stake worth nearly a quarter of a trillion dollars.
“Note that I don’t take cash pay or bonuses from anywhere,” Musk noted on Twitter. “I only have stocks, so the only way I can personally pay taxes is to sell stocks.”
Investors expected Musk to sell 5% to 6% of his shares to cover his next tax bill, Ives said.
The decision to sell 10% “might surprise some investors, but ultimately it’s a digestible figure that doesn’t worry us too much,” said Ives. “We would rather have Musk rip off the bandage now and sell that part of the stock rather than linger next year and fuel a non-fundamental bear thesis on history.”
Musk also recently raised the possibility that he would sell $ 6 billion in Tesla shares to help end world hunger – but only if the United Nations could transparently prove that it would work.
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