Tesla’s logo at a dealership in London, Britain, May 14, 2021. Photo: Reuters
Tesla Inc shares today (Monday) fell 4.5% as investors prepared for its chief, Elon Musk’s proposed sale of about a tenth of his holdings in the electric-car maker following his Twitter poll.
Reuters reports that Musk, the world’s richest person, tweeted on Saturday that he would offload 10% of his stake if users of the social media network approved the proposal.
The Twitter poll asking Musk’s followers if he should sell stock garnered more than 3.5 million votes, and 57.9% of the people voted “Yes”.
Musk had previously said he would have to exercise a large number of stock options in the next three months, which would create a big tax bill. Selling some of his stock could free up funds to pay the taxes.
“I only have stock, thus the only way for me to pay taxes personally is to sell stock,” Musk wrote along with his poll. “I was prepared to accept either outcome.”
The electric-vehicle maker’s shares (TSLA.O) were down at $1,167.66 in early trading, and if the losses hold, it would wipe off about $54 billion from the company’s market value.