The CEO of the electric mobility giant had asked his followers if he should sell part of his share package to pay taxes. The unusual question came following proposals by US Democrats to tax the share assets of multibillionaires, considered a means of tax avoidance. The affirmative answer of 57.9% of the voters (over 3 and a half million people). In total, the shares for sale would be worth approximately $ 21 billion. The stock exchanges react negatively
Elon Musk will sell 10% of the share package of his electric car company Tesla. So it should be if it respects what was decided by the participants in a poll that the company’s CEO launched on Twitter last Saturday, November 6. In fact, the entrepreneur asked his followers if he should sell a part of his stake in Tesla: 57.9% answered affirmatively. “There has been a lot of talk lately about gains made as a means of tax avoidance,” said Musk, referring to the US Democrats’ proposal on whether or not to raise taxation on billionaires, whose wealth lies mainly in the shares they hold, hitting precisely the equity asset. So it would be for Musk, the richest man in the world, with an estimated net worth of $ 243 billion. He provocatively admitted that much of his virtual capital gains “represent a form of tax avoidance”. The only way to pay taxes on this capital, as the Democrats would like, he said, is to sell some of the shares it holds. Markets didn’t like the news: Tesla opened 7% down on Wall Street.
The survey and the market response
57.9% of the participants in the online consultation (3.5 million people, out of a total of 62.7 million followers) expressed their opinion for the sale of the shares. The package to which the entrepreneur refers would have a value of around 21 billion dollars, after the increases in the last few weeks that have brought Tesla’s capitalization over one trillion. Musk had stated that “whatever the poll result will be, I will follow it”. It remains to be seen whether Musk will truly respect the choice of his followers, and what the consequences could be on Tesla’s market value.