Reactions to Musk’s ballot on offloading 10% of Tesla inventory By Reuters
© Reuters. FILE PHOTO: SpaceX founder and Tesla CEO Elon Musk watches as he visits the construction site of Tesla’s Gigafactory in Grünheide near Berlin on May 17, 2021. REUTERS / Michele Tantussi / File Photo
(Reuters) – Tesla (NASDAQ 🙂 Inc. CEO Elon Musk said Saturday that he would sell about 10% of his stake in the company, based on the votes of his Twitter (NYSE:) poll of users of the social media network asked if he should sell his shares. About 58% voted “yes”.
“A lot has been done lately that unrealized gains are a means of tax avoidance, so I suggest selling 10% of my Tesla stock,” Musk said in a tweet, adding that he has no cash salary or bonus ” from somewhere ”and only has stock.
Musk previously said that he would have to exercise a large number of stock options over the next three months, which would result in a huge tax burden. Selling some of its shares could free up funds to pay taxes.
Comments from analysts follow:
DAVID MADDEN, MARKET ANALYST AT EQUITI CAPITAL
“Whenever the dust settles, people keep stepping up, considering how many times this company has had, by and large, pretty big setbacks.”
“Selling holdings will have an immediate effect, but the most important thing here is the reason for selling holdings for tax reasons, and the market is not too shaken for that, as there is absolutely no reason to believe that the company is not doing well. “
NICHOLAS HYETT, ANALYST AT HARGREAVES LANSDOWN
“A large stock sale always has the potential to disrupt a company’s stock price, a simple sequence of supply and demand. However, it shouldn’t fundamentally change Tesla’s attractiveness or valuation, and if done well, the sale shouldn’t disrupt the stock price “in the long run.”
RUSS MOLD, DIRECTOR AT AJ BELL INVESTMENT
“Elon Musk doesn’t like doing things the conventional way, so it might seem crazy to do a poll on Twitter to sell 10% of his stake in Tesla, but you could say it’s normal behavior for him. “
“Investors can look at the situation and try to sell before he does, and then possibly buy back at a lower price if they still liked the stock, and profit for them if the stock falls.”
NEIL WILSON, CHIEF MARKET ANALYST AT MARKETS.COM
“You could say he just wants to sell stocks now because valuation has skyrocketed lately and cash out while things go well. It’s hard to criticize anyone for that, isn’t it? And instead of being scolded by his fans for selling? of his holdings, he can say, “Look, you told me to do it!” Anyway, Musk should start selling soon anyway because he’s faced with a huge tax bill on some of his stock options taking no salary or bonus as Tesla CEO (he likes to remind us) would be the only way to sell some stock.
DANIEL IVES, ANALYST AT WEDBUSH SECURITIES
“Today Musk owns approximately 23% of Tesla and it has been seen by many on the street that he would sell up to ~ 5% / 6% of his ownership interest, with 10% being a higher amount that might surprise some investors, but ultimately it’s a digestible number that we don’t worry too much about. We’d rather rip the band off and sell that portion of the stock to Musk now than hang around next year and get it into some non-basic bear thesis about history. “
CHAMATH PALIHAPITIYA, VENTURE INVESTOR
“We are witnessing the Twitter crowds decide the outcome of a $ 25 billion (billion) dollar coin toss.” (https: //