Twitter users vote for Musk to sell Tesla stock

Twitter users vote for Musk to sell Tesla stock

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%.

Sources: reuters.com, theguardian.com

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