Tesla shares fall as Musk keeps promise

Insight Online News

Washington, Nov 11 : Tesla chief executive Elon Musk has sold around $5 billion worth of shares days after he conducted a Twitter poll promising his followers to abide by the outcome whether he should sell 10 per cent of his shares in the company.

The company’s shares fell by around 16 per cent in the two days after the poll came out in favour of him selling shares, before regaining some ground on Wednesday.

Tesla, world’s most valuable carmaker, has a stock market valuation of over $1 trillion.

On November 6, Musk had asked his 63 million Twitter followers to vote on whether he should sell a part of his shares to meet his tax obligation.

He 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?”

“I only have stock, thus the only way for me to pay taxes personally is to sell stock,” he added.Nearly 58 per cent had voted in favour of the share sale.

According to a BBC report, Musk’s trust sold almost 3.6 million shares in Tesla, worth around $4 billion, and another 934,000 shares for about $1.1 billion after exercising options to acquire nearly 2.2 million shares.

However, the filings with the US stock market regulator says the sale of around a fifth of his shares was made on the basis of a pre-arranged trading plan in September.

Musk is the world’s richest person having a personal fortune of over $280 billion.

UNIINDIA

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