Tesla Share Price Drops Following Elon Musk's Twitter Poll
Tesla share price witnessed a significant drop of 4.9 percent following a poll for Twitter users favoring the company's chief executive Elon Musk for selling his stake by 10 percent to pay taxes. The disposed shares were worth $21 billion.
Musk created a poll lately for his followers on the social platform and asked whether to sell his stake in the company. More than fifty percent of his millions of followers voted favorably. He is the wealthiest person on the planet. He earlier mentioned would be abiding by the poll result.
He has a good number of stock options and many of these =may expire in 2023. To exercise these stock means need to pay a larger tax bill. His shareholding in the company was about 170.5 million. Currently, he owns a 23 percent stake in the company.
Meanwhile, Musk mentioned on Twitter that he is not paid any salary or bonuses from the companies. This means his earnings are zero and he seems not to be paying any income tax.
AJ Bell Investment Director Russ Mould said Musk does not follow the conventional ways and this is the reason he has created a poll on the social platform.
It was an open invitation and sellers were asked to place a bet on whether a drop in the share prices could be witnessed. This would generate a profit if the prices really dropped.
It is not to forget that rich people avoid keeping their wealth liquid. They store in the form of financial assets like shares and bonds of their companies. Taxes are levied only after the sale of the shares. Moreover, they can easily borrow funds by using the same financial assets as collateral.
Meanwhile, the Tesla shares covered a journey of a roller-coaster over the period of past two years and many long-term investors experienced the rapid growth.