Sunday, February 5, 2023

Musk: I will sell 10% of Tesla based on Twitter poll.

SILVER SPRING, Maryland (AP) – Tesla shares fell 3% at noon Monday after CEO Elon Musk said he would sell 10% of his electric vehicle maker shares – worth more than $ 20 billion, most estimates – based on results a poll he conducted on Twitter over the weekend.

According to analyst Daniel Ives of Wedbush Securities, Musk owns about 23% of Tesla and is taxed around $ 10 billion due to stock options that are rolling over next summer.

Most of Musk’s fortune belongs to Tesla shares, which do not pay him a cash salary. “I only have stocks, so the only way for me personally to pay taxes is to sell stocks,” Musk tweeted.

Many on Wall Street expected Musk to sell about 5% of his stake, Ives said, but even doubling that number is of little concern to him or his firm. Ives said it was best to “rip off the patch now” and avoid speculation.

“Tesla is still well positioned to take this EV curve to the next level both domestically and globally, with Musk & Co. is leading, ”Ives wrote in a note to clients.

Tesla was on the rise. As of Friday, the stock is up more than 40% from last month, when the company posted a record third-quarter profit. Tesla shares hit an all-time high of close at $ 1,229.91 a share last week. It is the most valuable car manufacturer in the world with a market capitalization of over $ 1 trillion. The stock fell just over 3% from its opening at $ 1,149.79 to $ 1,185 in morning trading after falling more than 6% immediately after the call. They are still up nearly 60% over the year.

The sometimes harsh and unpredictable Musk, whose net worth is around $ 300 billion, said he offered to sell shares as some Democrats insist that billionaires pay taxes when the price of their shares rises, even if they are not for sale. any promotions. However, the unrealized profits statement, also called the “tax on billionaires,” has been removed from President Joe Biden’s budget, which is still under negotiation.

“Lately, a lot has been done out of unrealized profits as a tax evasion, so I propose to sell 10% of my Tesla shares,” he tweeted on Saturday afternoon. “Do you support this?”

Musk said he will stick to the poll results, which resulted in 58% of the more than 3.5 million votes calling for him to sell shares. He did not say when he would sell the shares.

Musk is known for shaking the markets with his sometimes frivolous and reckless tweets. Tesla shares fell more than 3% last Tuesday after Musk tweeted that the deal to sell 100,000 Tesla to Hertz has yet to be signed. Hertz said the vehicles have already been delivered.

Ives called Musk’s recent Twitter poll “another bizarre soap opera that can only happen to one company and one CEO in the world, Musk.”

Nation World News Desk
Nation World News Desk
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