Elon Musk sells Tesla shares worth $6.9 billion on Twitterati’s advice, EV firm’s stock nosedive
New Delhi: Tesla CEO Elon Musk has sold 5.1 million shares worth $6.9 billion in the electric car manufacturer this week, the company said in its regulatory filings published on Friday. The stock sale is expected to lead to capital gains tax worth $1.4 billion.
The entrepreneur sold Tesla shares following the results of a Twitter poll, in which he had asked whether he should sell 10 per cent of his stake in electric vehicle maker, Tesla, or not.
Last Saturday, Tesla’s CEO tweeted, “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?”
The poll ended with 58 per cent of the 3.5 million votes in favour of Musk selling his stocks while the rest of 42 per cent had voted against the sale. However, regulatory filings pointed out that Musk had initiated the sale of a few shares even before he initiated the Twitter poll.
However, the sell-off of Tesla shares has led to a slump in the shares of the electric vehicle manufacturers. Overall, last week, the company’s share dropped by 15.4 per cent. The drop came after Tesla’s market cap crossed the $1 trillion mark. The shares of the company had started falling since Monday and have nosedived further. Also Read: SBI Debit Card: Here’s how to block your card during emergency
Even after selling 5.1 million Tesla shares, Musk still owns about 167 million shares in the company. Currently, Musk is the richest man on Earth. According to the Bloomberg Billionaires Index, the entrepreneur is worth $294 billion. Also Read: KYC Frauds: Retired RBI employee falls prey to a scam, loses Rs 3.38 lakh; Here’s how to remain safe
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( News Source :Except for the headline, this story has not been edited by Rashtra News staff and is published from a zeenews.india.com feed.)
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