Tech billionaire Elon Musk has been advised he ought to sell 10% of his shares in Tesla, price round $21bn, after asking individuals in a Twitter poll whether or not he ought to accomplish that.
Musk, who’s chief govt of the electrical car and clear power firm, stated he would “abide by the outcomes of this poll, whichever approach it goes” earlier than the voting closed.
The 50-year-old posted in a tweet as he shared the poll: “Much is made recently of unrealized (sic) beneficial properties being a way of tax avoidance, so I suggest promoting 10% of my Tesla stock. Do you assist this?”
The outcomes got here in and 57.9% of individuals stated he ought to sell the shares, to which Musk stated: “I used to be ready to accept either consequence.”
The poll attracted greater than 3.5 million votes.
Much is made recently of unrealized beneficial properties being a way of tax avoidance, so I suggest promoting 10% of my Tesla stock.
Do you assist this?
— Elon Musk (@elonmusk) November 6, 2021
As of 30 June, Musk’s shareholding in Tesla got here to about 170.5 million shares and promoting 10% would quantity to shut to $21bn (£16bn) primarily based on Friday’s closing, in accordance to Reuters calculations.
Musk stated in a separate tweet on Saturday that he doesn’t take a money wage or bonus “from wherever” and solely has stock, including: “Thus the one approach for me to pay taxes personally is to sell stock.”
He shared the poll after US Senate Democrats unveiled a proposal to tax billionaires’ shares and different tradeable property to assist finance President Joe Biden’s social spending agenda, and fill a loophole that has allowed them to defer capital beneficial properties taxes indefinitely.
Musk has criticized the proposal, saying: “Eventually, they run out of different individuals’s cash after which they arrive for you.”
Including stock choices, Musk owns a 23% stake in Tesla, the world’s most respected automobile firm whose market worth not too long ago exceeded $1tn (£741bn).
He additionally owns different precious firms, together with SpaceX.
The billionaire’s brother Kimbal Musk bought 88,500 Tesla shares on Friday, turning into the newest board member to offload a big quantity of Tesla shares, which hit file highs.
Every week in the past, Musk stated on Twitter that he would sell $6bn (£4.4bn) in Tesla stock and donate it to the United Nations’ World Food Programme (WFP), offered it disclosed extra details about the way it spent its cash.
Musk has beforehand stated he would have to train a big quantity of choices within the subsequent three months, which might create a giant tax invoice.
He additionally stated he didn’t need to borrow in opposition to stock to pay taxes as a result of stock worth might go down. If he bought some of the shares, that would liberate funds for the tax invoice.
Bryan Springmeyer, an lawyer at San Francisco-based legislation agency Springmeyer Law, stated: “(It) appears loopy to borrow that a lot to pay taxes, so I’ve to assume he’d want to liquidate a considerable quantity of the shares bought from the choice train to pay taxes.”