Elon Musk, CEO of Tesla Inc., will have to sell about 10% of his stake to Tesla, according to 57.9% of people who voted in his Twitter poll asking social media users whether he should settle the case. Twitter user says Elon Musk should sell billions of Tesla shares.
“I’m ready to accept both ways,” Musk said after the vote.
The world’s richest man tweeted on Saturday that he would get 10% of his stake if consumers agreed to the offer.
Musk previously said that he would have to exercise a large number of stock options over the next three months, which would result in a large tax account. The sale of some of its shares could exempt the IMF from paying taxes.
As of June 30, Musk’s stake in Tesla had reached about 170.5 million shares, and Reuters estimates revenue will reach nearly $21 billion when it closes on Friday.
The poll received more than 3.5 million votes.
“Lately, a lot of unrealized profits have been made as a means of tax evasion, so I offered to sell 10% of my stake to Tesla,” Musk said on Saturday, adding that he didn’t get a salary or bonus “out of nowhere. ” and Cash only.
Senate Democrats are submitting a proposal to tax the billionaire’s stock and other tradable assets to fund President Joe Biden’s social spending program and fill a loophole that would allow them to defer capital gains taxes indefinitely.
Musk criticized the proposal, saying, “At some point they will run out of other people’s money and they will come to you.” Senate Finance Committee Chair Ron Wyden, who proposed the tax proposal, said Saturday: “Whether the world’s richest person pays taxes should in no way depend on the results of a Twitter poll.”
“It’s time for the billionaire income tax.” Including stock options, Musk owns a 23 percent stake in Tesla, the world’s most valuable car company, with a current market value of more than $1 trillion. He also owns other valuable companies, including SpaceX.
His brother Kimball Musk sold 88,500 Tesla shares on Friday, becoming the last board member to dump a large number of Tesla shares that hit record levels.
A week ago, Musk announced on Twitter that it would sell $6 billion of Tesla stock and donate it to the United Nations World Food Program (WFP) if the organization discloses more information about how it spends the money.
Tesla bull Gary Black, portfolio manager at The Future Fund, said a potential sale of Musk’s stock would generate “1 to 2 days of modest selling pressure,” but said there would be strong institutional demand to sell the stock at a discount to buy. .
Tax on exercise of stock options
Musk has said he doesn’t want to borrow the stock to pay taxes because the value of the stock could fall.
He has the option to buy 22.86 million shares for $6.24 each, which Tesla’s filing says will expire on August 13 next year.
Exercising options could yield a profit of around $28 billion based on Tesla’s closing price of $1,222.09 on Friday.
In September, Musk said he would likely pay more than half the profits from exercising the options. Last year he said he was moved from California to Texas, which should lower the overall tax burden because Texas has no income taxes, experts say.
“It seems crazy paying so much tax, so I have to assume he should liquidate most of the stock he earned from exercising the tax payout option,” said Brian Springmeier, a San Francisco attorney. – Springmeyer Law Firm.