As Monday morning rises over the skies of Texas, Tesla CEO Elon Musk is left to decide whether or not to sell 10 percent of his stake in the company he has built from scratch for two decades or not. His Twitter followers are roughly divided on the issue, but the majority, or 57.9 percent more accurately, believe that Musk has to do it.
Tesla stock prices have been rising for some time and as the owner of 22.4% of the company’s shares, Musk has seen his own personal value. bubble over $ 300 billion. The rapid growth helped Musk abandon Jeff Bezos as the richest man on the planet by a significant margin. However, he was met with criticism because he did not even pay taxes, where millions of Americans had lost their jobs and millions around the world were facing starvation. Musk was even asked to sell part of his shares to donate to those in need, but later refrained from doing so.
Although Musk posted a poll on Twitter over the weekend, asking his more than 60 million followers if he should sell shares in Tesla and pay his taxes. Under current US law, shareholders of companies pay taxes only when they sell them, not when their value increases (unrealized profits) over time. While the upcoming bill aims to change that, Musk turned to Twitter to indicate his willingness to pay his share of the taxes, promising to abide by the results of the poll.
Recently, a lot of unrealized profits have been made as a means of tax evasion, so I offer to sell 10% of my shares to Tesla.
Do you support this?
– Lord Edge (@elonmusk) November 6, 2021
After the poll ended on Sunday, nearly 58 percent of more than three and a half million Twitter users voted that Musk should sell his shares. Bloomberg estimates that at current prices, the sale of 10 percent of the shares will bring Musk $ 21 billion. The media even said that Musk could consider selling the shares to raise some money above what he had secured after promising to raise money.
According to this Report on CNBCMusk has pledged 92 million of its 227 million shares to secure cash loans from borrowers and it may be time to repay some money. The report also notes that some of the stock options given to Musk in 2012 expire next year, so Musk must cash them in and pay a $ 15 billion tax on profits. So Musk is likely to sell his shares sooner or later this year or early next year, regardless of the Twitter poll.
For now, Tesla stock prices seemed to have peaked, but are likely to turn even lower when Wall Street opens on Monday. Musk may have promised to sell the shares, but he doesn’t have to say when. The question is whether he will use the money for altruistic purposes or just announce another company and start building supersonic aircraft with vertical take-off and landing capacities.