Who needs financial advisers when you’ve got Twitter followers? 62.8 million followers, in Elon Musk’s case. The CEO created a poll on his Twitter profile, asking his audience whether he should sell 10% of his Tesla stock to pay taxes.
“Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock. Do you support this?” he asked.
Musk’s echo-chamber
His followers responded, with the majority opting for the ‘Yes’ option in the poll. Shortly after, Tesla stock declined by 9%.
Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock.
Do you support this?
— Elon Musk (@elonmusk) November 6, 2021
“Tesla’s Frankfurt-listed shares fell about 9% in early trading on Monday as investors prepared for the chief executive Elon Musk’s proposed sale of about a tenth of his holdings in the electric carmaker after his Twitter poll,” The Guardian reports.
Musk currently holds 170.5 million Tesla shares as of 30 June. And if he sells at the closing price from Friday, he will cash out close to $21bn. This will be used to cover tax costs in the coming months.
“Musk had said previously 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,” continues The Guardian.
Note, I do not take a cash salary or bonus from anywhere. I only have stock, thus the only way for me to pay taxes personally is to sell stock.
— Elon Musk (@elonmusk) November 6, 2021
The billionaire opted to clarify in a follow-up tweet that he doesn’t in fact, draw a salary or bonuses from the company. According to his tweets, the only feasible method for him to pay tax is to liquidate stocks.