Musk asks Twitter followers if he ought to promote 10% of Tesla’s shares | Financial information

Tesla Inc CEO Elon Musk requested his 62.5 million Twitter followers in a ballot on Saturday whether or not he ought to promote 10% of his Tesla shares.

The richest particular person on the earth had beforehand stated he may face a “huge” tax invoice this 12 months as a result of he has to train numerous inventory choices maturing subsequent 12 months.

“Observe that I don’t take any money or bonus wages from wherever. I solely have shares, so the one method for me to pay taxes personally is to promote shares,” Musk stated on Twitter on Saturday. .

“There was plenty of speak recently about unrealized features being a method of tax evasion, so I’m proposing to promote 10% of my Tesla shares,” he stated, referring to a proposed “billionaires tax”. by Democrats.

Musk criticized the proposal, which might have an effect on 700 billionaires and impose long-term capital features taxes on marketable property whether or not or not they’ve been offered.

Musk stated he would respect the ballot outcomes it doesn’t matter what.

The ballot acquired almost 2 million responses in seven hours after its publication, with 55% of these polled approving the proposal to promote the shares. The ballot is predicted to finish round 3 p.m. ET (2000 GMT) on Sunday.

Musk’s stake in Tesla stands at round 170.5 million shares as of June 30 and the sale of 10% of his shares would quantity to almost $ 21 billion primarily based on Friday’s shut, based on Reuters calculations.

Musk has an choice to purchase 22.86 million shares at $ 6.24 every, which expires August 13 subsequent 12 months, based on a Tesla submitting. Tesla’s closing value was $ 1,222.09 on Friday.

In September, Musk stated he would doubtless pay taxes on greater than half of any earnings he produced from exercising choices. He additionally dominated out the chance that he would take out loans along with his Tesla shares as collateral. “Shares do not at all times go up. They go down,” he instructed the code convention.

Some members of Tesla’s board of administrators, together with his brother Kimbal Musk, offloaded numerous shares after Tesla inventory hit an all-time excessive in late October.

Musk just lately stated on Twitter that he would promote $ 6 billion in Tesla inventory and donate it to the World Meals Program (WFP), offered the group discloses extra data on how it’s spending its cash.

His tweet raised eyebrows within the monetary world.

“We’re seeing the plenty of Twitter deciding the end result of a $ 25 billion raffle,” enterprise capitalist Chamath Palihapitiya wrote on Twitter.

“I sit up for the day when the richest particular person on the earth paying taxes will not rely on a Twitter ballot,” Berkeley economist Gabriel Zucman tweeted.

Musk bought into hassle with a tweet concerning the privatization of Tesla in 2018.

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