Elon Musk, the CEO of Tesla and one of the world’s wealthiest individuals, recently asked his Twitter followers a question. He proposed selling 10% of his Tesla stock to address concerns about tax avoidance. After running a poll, 57.9% of respondents supported the idea while 42.1% were opposed. Musk followed through on the poll results and sold around 4.5 million of his personal shares of Tesla stock, amounting to approximately $5 billion. Reports suggest that these sales were partly made to meet tax obligations.
During the period the poll was active, there was uncertainty surrounding the value of Tesla stock. The stock price dropped by 15% on Tuesday but rebounded by 4% on Wednesday. Before the sale, analysts speculated on the potential impact of the sell-off. Some believed it would have minimal effect on Tesla as a company.
Elon Musk sells around $5 billion of Tesla stock. Here’s what you need to know. https://t.co/FcFw33l3zo
— CNBC (@CNBC) November 11, 2021
Mark Arnold, the chief investment officer at Hyperion Asset Management, expressed confidence, stating, “The stock is pretty liquid, and it’s not a huge percentage of total issued shares, so it shouldn’t have that much of an impact. We’re quite comfortable with the outlook for the business.” On the other hand, Ken Griffin, the CEO of Citadel, voiced concerns about the potential impact on consumer confidence in CEOs like Musk and Bezos, emphasizing the transformative role such individuals play in their companies.
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