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Tesla owner Elon Musk to his followers: 'Should I sell 10 per cent of my Tesla stock?'

Elon Musk posted that he does not receive a monetary salary or incentive from anyone on the microblogging site. He added that because only he owns stock, the only method for him to pay taxes is to sell shares.
 

Tesla owner Elon Musk asks his followers if he should sell 10 per cent of his Tesla stock gcw
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Washington D.C., First Published Nov 7, 2021, 6:39 PM IST
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Elon Musk, CEO of Tesla Inc, surveyed his 62.5 million Twitter followers on Saturday to see if he should sell 10% of his Tesla stock. The world's richest person recently stated that he might face a "huge" tax burden this year because he must execute many stock options that will expire next year. Elon Musk posted that he does not receive a monetary salary or incentive from anyone on the microblogging site. He added that because only he owns stock, the only method for him to pay taxes is to sell shares.

Referring to the Democratic tax proposal, he continued, "much has been made recently about unrealized gains being a form of tax evasion. Therefore he offered to sell 10% of my Tesla shares." Musk has blasted the idea, which would touch 700 billionaires by taxing long-term capital gains on marketable assets whether or not they were sold. Musk stated that he would follow the poll's conclusions regardless of the outcome.

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In the seven hours after he posted it, the poll attracted over 2 million replies, with 55% of respondents supporting the suggestion to sell the shares. The voting will close at 3 pm ET (2000 GMT) on Sunday. According to estimates, Musk's stake in Tesla was roughly 170.5 million shares as of June 30, and selling 10% of his stock would be worth close to $21 billion.

According to a Tesla filing, Musk has an option to purchase 22.86 million shares at $6.24 a share that expires on August 13, next year. On Friday, Tesla's closing price was $1,222.09. Musk stated in September that he expects to pay taxes on more than half of the earnings he would generate from exercising options. He also ruled out the notion of taking out loans with his Tesla stock as collateral.

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After Tesla stock reached a record high in late October, certain Tesla board members, notably his brother Kimbal Musk, sold huge stock. Musk recently tweeted that he would sell $6 billion in Tesla stock and donate the earnings to the World Food Program in exchange for the organization releasing more information about how its funds were used. In the financial sector, his tweet raised some eyebrows.

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