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Tesla Shares Dip After Twitter Poll Gives Musk The Go-ahead To Sell 10%

In a Twitter poll on Sunday, the world’s richest man Elon Musk posed the question of selling 10% of his Tesla shares to his 62.8 million Twitter followers.

There are speculations that the billionaire could let go of a portion of his stocks after 58% of eager respondents voted in the affirmative.

What Prompted The Poll?

This would not be the first time the eccentric billionaire would be starting polls on subjects that seem, to many, quite weighty decisions.

The viral Twitter poll came not long after the release of a proposal by Democrats in the US Congress aimed at billionaires. The proposal is supposed to oversee new taxes that will be levied on the long-term profits billionaires make on stocks and tradable assets they hold regardless of whether they are sold.

Much is being made lately of unrealized gains being a means of tax avoidance”, Musk tweeted alongside the poll.

He stated additionally that his income and bonuses are not paid in cash, like in 2012, when he was granted options as part of his compensation plan with Tesla. Musk suggests that selling off part of his TSLA holdings could be the only way for him to gather funds to pay off the new taxes.

Presently in the US, stockholders only pay taxes once their assets are sold. However, according to Roy Wyden, Democratic senator and chairman of the Senate Finance committee, with the new proposal, the hundreds of wealthy citizens throughout America will be made to pay taxes each year “just like working Americans”.

The senator also commented on Musk’s poll saying whether Musk as the richest man in the world would pay taxes should not be dependent on how a Twitter poll would turn out.

Will Musk Follow Through With The Poll Results?

Approximately $208 billion worth of Tesla stocks which is about 17% of the company’s shares makes up Musk’s total wealth of $338 billion. As it remains a possibility that the billionaire will go ahead to sell off holdings valued at almost 21 billion USD, the share price has plummeted by 5% within the last day.

Even though selling off a tenth of his holdings might cause a massive decrease in the share price, it is a floating possibility that the billionaire might have no choice but to sell fractions of his stock as his promise to follow through with what the voters decided has already impacted the share price.

If the losses continue, Tesla’s market value could drop by $54 billion and Musk could be in trouble with market regulators once more. In 2018, Musk and Tesla each had to pay a 20 million dollar fine for misleading investors by tweeting about the possible privatization of the electric car company.

According to analyst David Madden, the latest dip in price won’t hold for long as Tesla has a history of swiftly recovering from sell-offs such as this.

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