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Stock sale impact 'closer to tax maximization,' Elon Musk says

13:45, 14 November 2021
Stock sale impact 'closer to tax maximization,' Elon Musk says Photo: Kim Shiflett/Global Look Press

The CEO of Tesla Elon Musk said that the impact of him selling out his stocks was "closer to tax maximization than minimization."

SpaceX CEO said that while responding to a Twitter user who said that Musk would end up having more Tesla stocks if he sold options.

"A careful observer would note that my (low basis) share sale rate significantly exceeds my 10b (high basis) option exercise rate, thus closer to tax maximization than minimization," Musk said.

The sellout of stocks could free up some funds which will be used to pay taxes.

Earlier Musk held a poll on his Twitter asking whether he should sell 10% of his stocks.

"Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock," he said.

The majority said yes and he followed the lead. 

Musk’s actions come after Biden’s administration presented the billionaire’s tax which would see billionaires paying additional taxes on tradable assets that grow in value over time like stocks.