Elon Musk has sold $5 billion worth of Tesla stock. The announcement came after he took to Twitter to ask if he should sell some of his shares in the company. A majority of his followers said yes.
Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock.
Do you support this?
— Elon Musk (@elonmusk) Nov 6, 2021
Tesla CEO sells 10% of his shares
Of the more than 3.5 million Twitter users who voted, about 58% thought Musk should sell 10% of his shares. Shortly after the billionaire announcement, Tesla lost $50 billion on the stock market. However, the share has since risen again.
Musk now appears to have ordered in September to sell more than a billion worth of shares this week. An additional $4 billion was added on Tuesday and Wednesday. It’s unclear how the sale compares to the Twitter poll and whether Musk indeed plans to keep selling Tesla stock until he hits the suggested 10 percent.
The documents show that Musk had already planned to sell the shares in September as part of his tax obligations. Tesla’s CEO said he had to sell his shares for the following reason:
I do not accept a salary or bonus in cash anywhere. I only own stocks, so the only way for me to personally pay taxes is to sell stocks
In the days following the poll, Tesla stock fell 16%, briefly dipping below $1,000 on Nov. 10. Some in the crypto world are hoping that maybe he will put some of the money into cryptocurrencies. A tweeter named “Mr. Whale” asked his 357,000 followers, “Which cryptocurrency should he buy to make himself the very first billionaire?”
The CEO of MicroStrategy, Michael Saylor, suggested he buy more Bitcoin after the Twitter poll but before the news of this sale came out:
If the goal is diversification, an alternative strategy to consider is to convert the $TSLA balance sheet to a Bitcoin standard and buy $25 billion Bitcoin. That would provide diversification, inflation protection and more sides for all investors in a tax efficient way
According to BitcoinTreasuries, Tesla currently owns 43,200 Bitcoin worth an estimated $2.79 billion at current prices.