Musk set to sell 10% of his Tesla shares, Twitter users say
Add Musk tweet, expert commentary on options
November 7 (Reuters) – Tesla Inc TSLA.O CEO Elon Musk is expected to sell about 10% of his Tesla shares, according to 57.9% of people who voted on his Twitter poll asking users of the social media network if he should step off the stake.
“I was prepared to accept either outcome,” Musk said at the end of the vote.
The richest person in the world tweeted on Saturday that he would offload 10% of his shares if users approved the proposal.
The poll garnered over 3.5 million votes.
“There has been a lot of talk lately about unrealized gains being a means of tax evasion, so I am proposing to sell 10% of my Tesla shares,” Musk said on Saturday, adding that he was not taking a salary in cash or bonus “from anywhere”, and no Stock.
Democrats in the US Senate have unveiled a proposal to tax billionaires’ shares and other marketable assets to help fund President Joe Biden’s social spending program and fill a loophole that has allowed them to defer earnings tax indefinitely in capital.
Musk criticized the proposal, saying, “Eventually they run out of money for the others, then they come and get you.”
As of June 30, Musk’s stake in Tesla was around 170.5 million shares and the 10% sale would amount to nearly $ 21 billion based on Friday’s close, according to calculations. from Reuters.
Including stock options, Musk owns a 23% stake in Tesla, the world’s most valuable automaker whose market value recently exceeded $ 1,000 billion. It also owns other valuable companies, including Space X.
His brother Kimbal Musk sold 88,500 Tesla shares on Friday, becoming the latest board member to dispose of a large number of record-breaking Tesla shares.
A week ago, Musk said on Twitter that he would sell $ 6 billion in Tesla stock and donate it to the United Nations World Food Program (WFP), provided the organization discloses more information about the way she spends her money.
Musk has previously said he would have to exercise a large number of options over the next three months, which would create a big tax bill.
He also said he didn’t want to borrow stocks to pay taxes because the value of the stocks might go down. If he sold part of the shares, that could free up funds for the tax bill.
“(It) seems crazy to borrow so much to pay taxes, so I have to assume he would need to liquidate a substantial amount of the shares purchased when exercising the option to pay taxes,” Bryan said. Springmeyer, lawyer in San Francisco. Springmeyer Law firm.
(Reporting by Aishwarya Nair and Vishal Vivek in Bengaluru and Hyunjoo Jin in San Francisco; editing by Daniel Wallis)
((Aishwarya.Nair@thomsonreuters.com; + 91-8067494421;))
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