Twitter users vote for Musk to sell Tesla stock

By: Miguel A. Rodriguez

19:07, 08 November 2021

Tesla started the week on the wrong foot

On Monday, the company’s share price fell as much as 7.5% in premarket trading as investors prepared for the upcoming Musk’s proposed sale of about a tenth of his Tesla holdings following a Twitter poll.

On Saturday, Elon Musk tweeted that he considers selling 10% of his stock if Twitter users approve the proposal. 3.5 million users engaged in the voting process, and 57.9% of people voted “Yes.” The poll came after Musk said he would exercise many stock options in the next three months, which would create a hefty tax bill.

Musk’s poll follows a US Senate Democrats tax proposal to tax billionaires’ stocks and other tradeable assets to finance Joe Biden’s social spending agenda. Moreover, a loophole that has allowed billionaires to defer capital gains taxes indefinitely will be closed.

According to Refinitiv Eikon data, in the three months to Nov 4, company insiders sold $ 259.62 million worth of shares.

Despite Musk’s enthusiasm, investors will also be waiting for a response from regulators. The US Security and Exchange Commission has ordered Tesla to vet any public communications-type material Musk made on the EV maker.

In Europe, Tesla’s Frankfurt-listed shares fell about 9%.



Share this article

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.