The Twitter poll cost Tesla owner a sixth of his personal fortune. It is yet another case that demonstrates the volatility of the wealth of the scroungers who hold many shares listed on the stock exchange
Elon Musk lost $ 50 billion in one tweet. This was the cost of the poll published on Twitter by the entrepreneur on Saturday, in which Musk asked users whether or not to sell 10% of his Tesla shares (after 3.5 million votes, he won the sale). A $ 21 billion survey.
Tesla -16% on Wall Street
The move was little appreciated by Wall Street, given that in two days the Tesla stock lost 16 percent of its value, equal to 200 billion. Investors, aware of Musk’s imminent sale, disposed of their shares to anticipate the price drop. In fact, as in any market, the more stocks are sold, the more their price falls. On the other hand, a CEO who sells shares in his own company does not offer an image of solidity and trust.
The suspected coincidence that Elon’s brother Kimbal Musk sold $ 109 million worth of Tesla stock at full price just prior to the Twitter poll helped to lose confidence in the stock. As did the report released by Michael Burry, the trader made famous by the film “The big bet” who accuses Musk of having to sell his securities to pay off some personal debts.
Musk “gets impoverished”
The collapse on Wall Street has also affected, at least for now, Elon Musk’s personal fortune of 300 billion, who has lost 50 billion on the street in the last two days. This is the second largest decline ever after Jeff Bezos lost $ 36 billion in a single day after his divorce with ex-wife MacKenzie Scott. Despite this, Musk still remains – according to Bloomberg – the richest man in the world by detachment.
This is yet another case that demonstrates the volatility of the wealth of the super-rich who choose to hold a large part of their wealth in publicly traded shares. Also according to Bloomberg, Musk has 174 billion Tesla shares in his pocket, which represents the majority of his wealth. For Bezos, Amazon’s stocks even account for nearly 90 percent of his nest egg. The same problem had also happened to Mark Zuckerberg who in October had lost about 6 billion dollars after the fall on Wall Street of his Facebook blocked by technical problems.
Matter of taxes
However, holding wealth on the stock exchange helps to pay less taxes: as long as these securities are not sold and a profit is collected, one euro of taxes is not paid. That is why US President Joe Biden has proposed taxing the held and unsold shares of the 600 richest men and women in the country. Also in view of this possible novelty, Musk has launched the poll on Twitter. After all, it’s all about taxes.