Tesla shares fell 7.5% in pre-market trading on Monday as investors proposed to sell their shares in the electric car manufacturer after their CEO Elon Musk (Elon Musk) proposed to sell his shares in the electric car manufacturer after a poll. One-tenth to prepare.

Tesla CEO and the world’s man Musk said on on Saturday that if users of the social media network approve the proposal, he will sell 10% of his stock.

The electric car manufacturer’s share price fell 6.2% to US$1,146.43 (approximately Rs 84,900). The Frankfurt-listed shares fell about 7% to 989.10 euros (approximately 84,700 rupees).

A poll on asking Musk’s fans whether they should sell the stock received more than 3.5 million votes, and 57.9% voted “yes”.

Musk has previously stated that he will exercise a large number of stock options in the next three months, which will generate huge taxes. Selling some of his shares can free up money to pay taxes.

“I am ready to accept any result,” Musk said after the vote. Market participants expect speculators to try to sell first.

According to Reuters calculations, as of June 30, Musk held approximately 170.5 million Tesla shares. Based on Friday’s closing price, the sale of 10% of the shares would be close to 21 billion U.S. dollars (approximately 1,554.8 billion US dollars). rupee).

Including stock options, Musk owns 23% of Tesla, which is the world’s most valuable auto company.

According to data from Refinitiv Eikon, in the three months ended November 4th, Tesla insiders sold $259.62 million (approximately Rs 192.2 billion) worth of shares, excluding the disposal of indirectly held shares.

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Musk’s grassroots poll came after the U.S. Senate Democrats proposed a tax on billionaire stocks and other tradable assets to help fund President Joe Biden’s social spending agenda and fill a loophole that allowed them to defer capital gains taxes indefinitely. ongoing.

Chris Weston, head of research at Pepperstone, a Melbourne brokerage, said: “The last thing you do when offloading a lot of risk is to expose your hands.”

“When you have such a pending decision, buyers tend to walk away, but this is not an ordinary story. It is Musk’s way of renewing his proposal to tax the elite with unrealized profits.”

Tesla’s market value exceeded $1 trillion last month, becoming the fifth American company to join clubs including Apple, Microsoft, Amazon, and Alphabet.

David Madden, a market analyst at Equiti Capital in London, said: “The decline will not last long because Tesla has such an amazing of rebounding from such a sell-off.”

Investors will also pay attention to any response from regulators to Musk’s poll. The U.S. Securities and Exchange Commission has ordered Tesla to review any major public communications made by Musk regarding the electric car manufacturer. He previously tweeted in 2018 that he had “received funding”, possibly for $72 billion ( (Approximately Rs 5,314.45 crore) to privatize Tesla. ) trade.

© Thomson Reuters 2021