Tesla’s stock plummets after Musk’s opinion poll says he should sell 10%

17:42, 08 November 2021
Tesla’s stock plummets after Musk’s opinion poll says he should sell 10% Photo: Scott Carson/ Look Press

The largest car company in the world recorded a fall in its shares after CEO Elon Musk had launched the open poll as a reaction to President Biden’s initiative to tax tradeable assets of billionaires.

Tesla Inc shares fell by more than 5% in early trading on Monday as investors anticipate entrepreneur Elon Musk’s sale of 10% of his holdings in the company which has recently surpassed a $1-trillion market capitalization threshold. The 5% drop is estimated to cost some $66 bln.

Earlier the businessman launched an opinion poll on his Twitter account asking whether he should sell 10% of his Tesla’s stock, promising that he would “abide(n) by any decision”.

More than 3.5 mln netizens participated in the poll with almost 58% of them favorable towards the initiative.

According to this June's data, Musk is holding around 171 mln shares in the company worth more than $1,150 each, and selling 10% of them means the sum of over $21 bln. The businessman holds a 23% stake in Tesla.

The move comes as the US Democrats propose to tax billionaires’ stocks and other tradeable assets which are often regarded as a means of avoiding direct taxation. Authorities seek to get the necessary funding for US President Joe Biden’s infrastructure plan and toughen the taxation system in the country.

Earlier Tesla became the sixth US company to ever join the “$1 trillion club” after Apple, Google’s parent Alphabet, Microsoft, Amazon, and Facebook which had recently dropped out after a reputation scandal caused by the so-called leaked “Facebook Papers”.