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Tesla share price falls over 5% after Elon Musk proposes selling 10% of his stock in a Twitter poll
Tesla share price fell over 5% in early morning trading Monday after CEO Elon Musk asked his Twitter followers if he should sell 10% of his stock in the company.
Tesla share price fell over 5% in early morning trading Monday after CEO Elon Musk asked his Twitter followers if he should sell 10% of his stock in the company.
Recall that in a Twitter poll launched on Saturday, Musk said: “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 billionaire gave people the option to vote “Yes” or “No” and pledged to abide by the results of the poll, whichever way it went.
Some 3,519,252 people responded, and 57.9% of them voted for “Yes.”
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?
— Lorde Edge (@elonmusk) November 6, 2021
Before the Tesla share price fall, Elon Musk previously said he was likely to sell “a huge block” of his shares in the fourth quarter.
According to CNBC, in September, Elon Musk said at the Code Conference in Beverly Hills, California, that his marginal tax rate will be over 50% when his stock options expire at Tesla, and that he was already planning to sell soon.
“I have a bunch of options that are expiring early next year, so … a huge block of options will sell in Q4 — because I have to or they’ll expire,” he said.
Analyst Philippe Houchois wrote: “Without dismissing execution risk, Tesla is getting to a position where it can balance affordability and speed, goals which are as important as profitability in Elon Musk’s vision.”
He added: “Tesla looks set to gain share from large OEMs [original equipment manufacturers], potentially claiming a disproportionate share of the industry profit pool in the coming 3-5 years as legacies enter the margin dilutive EV transition phase.”
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