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Why is Musk considering the sale of 10% of his shares in Tesla ?: An investor points to a reason, while the company falls in the stock market

Posted: 10 Nov 2021 00:03 GMT

Faced with today’s slide, the electric car giant’s shares have risen more than 60% in the past six months and its market capitalization remains above $ 1 trillion.

While Tesla shares fell 10% on the Nasdaq stock this day, prominent American investor Michael Burry speculated on the reasons that could push the CEO of the company, Elon Musk, to sell 10% of his shares.

“As for what Musk needs to sell, because of the proposed tax on unrealized profits, or to solve world hunger, or … Well, there’s the matter of the tax-free money he took out on June 30 in form of personal loans backed by 88.3 million of their shares, “Burry wrote in a tweet already deleted, but captured shortly before by Business Insider.

Elon Musk's brother makes nearly $ 110 million selling Tesla stock

With his post, Burry hints that Musk actually needs the cash to cover the credits you have asked for, and for no other reason.

In that sense, the media alludes to another Burry post, from last August, to which it attached a link to a report from the US Securities and Exchange Commission, where it is documented that Musk had placed 88 million shares from Tesla as collateral for personal loans.

Meanwhile, and in the face of today’s drop, the electric car market giant’s share price has risen by more than 60% in the last six months, while its market capitalization remains above One billion dollars, as indicated by Google Finance data.

On November 6, Musk launched a survey on Twitter in which he asked his followers if he should sell 10% of his Tesla shares, pledging to comply with the result of the query. As motivation for the potential sale, the South African businessman referred to the popular opinion that “unrealized profits are a means of tax evasion.” The majority of respondents (57.9%) voted in favor of the sale.The survey was conducted by the businessman after the Joe Biden Administration announced plans to levy a billionaire tax to help finance the increase in income. social spending. Under current US tax law, stocks and other assets are only taxed if sold.

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Donna Miller

Donna is one of the oldest contributors of Gruntstuff and she has a unique perspective with regards to Science which makes her write news from the Science field. She aims to empower the readers with the delivery of apt factual analysis of various news pieces from Science. Donna has 3.5 years of experience in news-based content creation, and she is now an expert at it. She loves journalism, and that is the reason, she moved from a web content writer to a News writer, and she is loving it. She is a fun-loving woman who has very good connections with every team member. She makes the working environment cheerful which improves the team’s work productivity.

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