November 8, 2021

Tesla Shares Fall Due to Elon Musk's Twitter Poll

 Shares of Tesla in Frankfurt fell 9% during the early trading session on Monday after investors took note of Musk's Twitter poll regarding the sale of a 10% stake in its company.

Earlier, Musk conducted a poll on his personal Twitter regarding his proposal to sell 10% of his shares and the results of the poll found that 57.9% of voters voted "Yes" out of a total of 3.5 million votes.

Shares of Frankfurt -listed Tesla were down 7.9% at € 980 at 0731 GMT. Its shares listed in the United States (US) are up 73.2% so far this year compared to a 23.9% increase in the Nasdaq Composite index.

Musk previously stated the need to exercise a large number of stock options in the next 3 months which would create a large tax bill and as a result allow him to free up funds to pay taxes.

As of June 30 Musk shares in Tesla hit 170.5 million and 10% sales will total about US $ 21 billion based on Friday’s close. Including stock options, Musk owns a 23% stake in Tesla, the world’s most valuable car manufacturing company.

According to Refinitiv Eikon data, in the 3 months to November 4 Tesla sold shares worth US $ 259.62 million, excluding the disposal of indirectly held shares.

The poll by Musk follows a U.S. Senate proposal to tax billionaire stocks and other negotiable assets to help fund President Joe Biden's social spending agenda as well as fill loopholes that allow them to defer capital gains taxes.

Tesla hit $ 1 trillion in total market capitalization at the end of October making it the fifth largest U.S. company joining Apple, Microsoft, Amazon and Alphabet.