Elon Musk Begins Selling Off Tesla Stock After Asking Twitter Whether To Pay His Taxes
Elon Musk sold off billions of dollars in Tesla shares after asking Twitter users whether he should use the money to pay his taxes.
The SpaceX founder took to Twitter on Saturday, November 6 to ask his followers whether he should use his Tesla stock to pay for his taxes, noting: ‘Much is made lately of unrealized gains being a means of tax avoidance.’
Musk proposed ‘selling 10% of [his] Tesla stock’ and created a poll to ask followers whether they ‘support this’, promising he would ‘abide by the results of this poll, whichever way it goes’.
He later responded to the tweet as if to correct a typo, writing ‘* abide(n)’, indicating the poll related to Biden’s proposed tax on unrealised stock gains.
After support for Musk selling his Tesla stocks received the majority vote, he sold off roughly 3% of his Tesla holdings, equating to about $5 billion.
The billionaire reported the sale of his shares in filings on Wednesday after explaining on Twitter he does ‘not take a cash salary or bonus from anywhere.’
He explained: ‘I only have stock, thus the only way for me to pay taxes personally is to sell stock.’
While about $4 billion worth of the sale could be considered as counting towards the 10% he promised to sell, the sale of a further $1.1 billion worth came under an options arrangement to acquire nearly 2.2m shares – an arrangement set up in September, prior to Musk’s poll, The Guardian reports.
Musk’s decision to sell the stocks helped to push down Tesla’s share price, with the company’s stock sinking 12% on Tuesday in a multi-day selloff before recovering 4.3% the following day.
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