Elon Musk proposes in a Twitter poll to sell 10% of his Tesla equity.
Sunday, November 7, 2021 | Chimniii Desk
Key Highlights
- Elon Musk, CEO of Tesla Inc, took to Twitter to decide the fate of his 10% stake in the electric car firm, polling his 62.6 million followers on whether he should sell his shares.
- He has stated that he will "abide by the outcome of this poll, regardless matter how it turns out.
- "Musk's abrupt announcement comes amid congressional pressure to raise taxes on billionaires.
- By 10:30 a.m. (Indian time), more than 55% of the 2,262,895 votes had been cast in favour.
- The poll will close at about 3 p.m. ET (2000 GMT) on Sunday.
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Elon Musk, CEO of Tesla Inc, took to Twitter to decide the fate of his 10% stake in the electric car firm, polling his 62.6 million followers on whether he should sell his shares.
He has stated that he will "abide by the outcome of this poll, regardless matter how it turns out."
Musk's abrupt announcement comes amid congressional pressure to raise taxes on billionaires. Certain Democrats have proposed imposing a new tax on the wealthiest Americans by taxing unrealized capital gains—gains that accrue when the price of the stocks they own increases, even if they do not sell any shares.
"Given the recent emphasis on unrealized gains as a way of tax evasion, I advise selling 10% of my Tesla stock. Are you in favour of this?" On Saturday afternoon, he tweeted.
Given the recent emphasis on unrealized gains as a tool of tax evasion, I recommend selling 10% of my Tesla stock.
Are you in favour of this?
November 6, 2021 — Elon Musk (@elonmusk)
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Musk's fortune is largely comprised of Tesla stock, which does not pay him a salary in cash.
"Because I own just stock, the only method for me to pay taxes is to sell shares," he tweeted.
By 10:30 a.m. (Indian time), more than 55% of the 2,262,895 votes had been cast in favour. The poll will close at about 3 p.m. ET (2000 GMT) on Sunday.
Musk's stake in Tesla was approximately 170.5 million shares as of June 30, and according to Reuters calculations, selling 10% of his stock would be worth close to $21 billion at Friday's closing price.
The so-called "Billionaires Income Tax" would apply only to 700 taxpayers with at least $1 billion in assets or $100 million in income over a three-year period.
The plan states that the new tax would raise "hundreds of billions of dollars."
According to an analysis by the pro-wealth tax Americans for Tax Fairness and the Institute for Policy Studies' Program on Inequality, America's billionaires' aggregate wealth has increased by 70% since the pandemic began, to over $5 trillion.
This increase starting March 18, 2020, is comparable to Biden's 10-year expenditure forecasts, according to news agency AP.
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