Musk asks Twitter followers whether or not he ought to promote 10% of Tesla inventory By Reuters

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© Reuters. FILE PHOTO: Elon Musk, CEO of Tesla Inc, speaks on stage during a delivery event for Tesla Model 3 cars made in China at his factory in Shanghai, China, Jan. 7, 2020. REUTERS / Aly Song / File Photo

By Ann Maria Shibu and Hyunjoo Jin

(Reuters) – Elon Musk, CEO of Tesla Inc, asked his 62.5 million followers on Twitter (NYSE 🙂 in a poll on Saturday whether he should sell 10% of his Tesla shares (NASDAQ :).

The richest person in the world had previously said that he could face a “massive” tax bill this year as he has to exercise a large number of stock options due next year.

“Note that I am not taking any cash or bonus anywhere. I only have stocks, so I can only pay taxes in person by selling stocks,” Musk said on https://twitter.com/elonmusk/status/ 1457064697782489088 Twitter on Saturday.

“A lot has been done lately that unrealized gains are a means of tax avoidance, so I suggest selling 10% of my Tesla stock,” he said, referring to a “billionaire tax” proposed by the Democrats.

Musk has criticized the proposal, which would affect 700 billionaires and levy taxes on long-term capital gains on tradable assets, whether or not they were sold.

Musk said he would stick to the survey results no matter what happens.

The survey received nearly 2 million responses within seven hours of its publication, with 55% of respondents approving the proposal to sell the shares. The poll is scheduled to end around 3:00 p.m. ET (2000 GMT) on Sunday.

Musk’s stake in Tesla is approximately 170.5 million shares as of June 30, and the sale of 10% of his shares would amount to nearly $ 21 billion when it closes on Friday, according to Reuters calculations.

“GO TO CAMP”

According to a Tesla filing, Musk has an option to purchase 22.86 million shares at $ 6.24 each that expires on August 13 next year. Tesla’s closing price on Friday was $ 1,222.09.

In September, Musk said he would likely pay more than half of the profits from exercising options. He also rejected the option of using his Tesla stock to borrow as collateral. “Stocks don’t always go up. They go down,” he said at the code conference.

Several Tesla board members, including his brother Kimbal Musk, dumped large numbers of shares after Tesla shares hit a record high in late October.

Musk recently said on Twitter that he would sell $ 6 billion worth of Tesla stock and donate it to the World Food Program (WFP), provided the organization provides more information on how it spent its money.

His tweet caused a stir in the financial world.

“We are witnessing how the Twitter masses decide on the outcome of a 25 billion dollar coin toss,” wrote venture investor Chamath Palihapitiya on Twitter.

“I’m looking forward to the day when the richest person in the world who pays taxes doesn’t depend on a Twitter poll,” tweeted Berkeley economist Gabriel Zucman.

Musk got into trouble in 2018 with a tweet about Tesla’s privatization.

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