Sunday, November 28

Why does Elon Musk want to sell his Tesla shares? | Digital Trends Spanish

Elon Musk has so much money that he can afford to let people have a say in his business and decide his next financial moves. His latest online show came this weekend, when he cast a vote on Twitter on the sale of his shares in his electric car company.

On Saturday afternoon the billionaire CEO of Space X and Tesla wrote on Twitter: “There is a lot of talk lately that unrealized gains are a way to evade taxes, which is why I propose to sell 10 percent of my Tesla stock. Do you support this? ”, Along with a survey where you could answer yes or no.

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?

& mdash; Elon Musk (@elonmusk) November 6, 2021

Musk is known to love to joke around on social media by sharing (and “stealing”) memesBut he insisted that the post about Tesla’s stock is serious.

Minutes after posting the vote, Musk also mentioned: “I will abide by the results of this poll, whatever they are.” And in another tweet he added: “Keep in mind that I do not receive a cash salary or a bonus from anywhere. I only have shares, so the only way to pay taxes personally is by selling shares. “

Note, I do not take a cash salary or bonus from anywhere. I only have stock, thus the only way for me to pay taxes personally is to sell stock.

& mdash; Elon Musk (@elonmusk) November 6, 2021

However, that doesn’t stop him from being among the wealthiest people in the world, with a wealth of roughly $ 318 billion, well ahead of the $ 203 billion of Jeff Bezos, the creator of Amazon.

By Sunday morning, 3.1 million people had responded to Musk’s poll, which found that 57.9 percent of the social network’s users were in favor of selling their shares and 42.1 percent against. This means that Musk would sell what is equal to $ 21 billion in Tesla stock.

Everything was coldly calculated

While Musk said he intended to sell the shares to “pay the taxes personally,” his intention appears to be going a different way. As reported The New York TimesMusk must pay high taxes on the shares if he does not sell them, which is why he launched the survey on social media just at this time.

Brian Foley, an executive compensation consultant told the outlet: “It’s a tax time bomb. All of a sudden, I can’t think of any way that he can pay for them. “

Musk received nearly 23 million stock options in 2012 as part of a compensation plan, and these will expire in August 2022. So when that happens, the billionaire will have to pay more than $ 15 billion in taxes because of how the options were structured. .

Everything indicates that Musk had already planned to sell the shares to avoid paying that huge amount of taxes, so he would have used the Twitter poll to disguise his next financial move.

Musk was probably going to sell some of his Tesla shares before the end of the year, but no one imagined there would be a Twitter poll that would translate into a 10 percent sale of his property. This weekend’s Twitter poll was weird even for Elon, ”Wedbush Securities analyst Daniel Ives told The New York Times.

In addition, his commitment to sell 10 percent of the shares would make him trade them for $ 21 billion at current prices, that is, much more than the amount Musk would need to pay taxes.

The company has also recently revealed that Musk has borrowed his shares as collateral and, with the sales, the businessman may want to pay off some of those loan obligations.

Now, because CEOs have limited windows to trade stocks, and Musk likely wants to stagger sales for at least two quarters, Musk is expected to begin dumping his shares in the fourth quarter of 2021.

In fact, at the Code conference in September, Musk said: “I have a ton of stock options expiring early next year, so… a big block of them will sell in the fourth quarter, I have to or they will expire. ”(Via CNBC).

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