Elon Musk Is Using A Twitter Poll To Decide Whether He Will Sell Around $20 Billion Of His Tesla Stock

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splits: 27

Elon Musk, who earlier this week topped John D. Rockefeller to become the richest person in history, is contemplating promoting roughly $20 billion price of his Tesla inventory. How is he making his resolution? Is he consulting with a workforce of the world’s finest monetary and tax advisors? Nope. Is he discussing the implications with the Tesla board of administrators? Nope.

He’s utilizing a Twitter ballot.

Right here it’s. A Twitter ballot that can resolve whether or not or not an enormous chunk of Tesla’s whole excellent fairness will probably be liquidated:

As of this writing, 6am PST on Sunday 11/7 (rattling you daylight financial savings time), 3.1 million folks have voted on his ballot with 57.1% of respondents voting YES.

The ballot will stay open for one more 4 hours, till roughly 10:20 am PST.

It isn’t clear if Elon will promote 10% of his stake suddenly or over a gradual roll out. Virtually definitely, he’ll slow-roll over a bunch of gross sales to stop flooding the market and tanking Tesla’s share value.

In response to the corporate’s most-recent SEC submitting, there are presently 1,004,264,852 whole shares of Tesla excellent. In response to a distinct current SEC submitting, Musk presently controls round 17% of the overall shares excellent. He technically may finally personal 23% of Tesla whenever you depend choices that he has not obtained but.

17% of 1,004,264,852 = 170,725,024 shares owned by Elon at present.

If the ballot ends with a YES, Elon will probably be promoting roughly 17 million Tesla shares. Tesla’s share value closed at $1,222.09 on Friday. So…

$1,222.09 * 17 million = $20,864,134,560

AKA…

$20.8 billion

As Elon factors out in a follow-up Tweet, he doesn’t obtain any wage or bonus from any of his varied firms. Due to this fact, promoting inventory – which creates a “realized acquire”- can be the one approach he may probably pay taxes on his historically massive fortune.

Elon just lately moved from California to Texas, partly to be nearer to his new large Tesla manufacturing facility – which is THREE TIMES bigger than the Pentagon – but in addition to get away from California’s annoying native politicians and unfriendly enterprise rules. Oh, and ya… Texas does not levy residents with a state earnings tax. That is a pleasant bonus.

Due to this fact, the one tax Elon will probably be topic to would be the IRS’ prime long-term capital good points fee. That present prime fee on long run good points is 23.8%.

23.8% of $20.8 billion = $4.95 billion in taxes owed to the IRS.

That would depart Elon with $15.85 billion in money after taxes.

When Elon was a resident of California, any funding acquire (quick or long-term) would have been topic to its nation-leading state earnings tax fee. That fee is 13.3%. Had Elon carried out this ballot whereas nonetheless being a resident of California, he additionally would have owed $2.7 billion in taxes to the state of California.

No phrase but on what Elon is planning on doing with roughly $15 billion, however he did just lately get right into a Twitter spat that may give us some clues. On Monday, CNN revealed an article titled:

“2% Of Elon Musk’s Wealth Would Remedy World Starvation, Says Director of UN Meals Shortage Group”

Elon responded to the article over Twitter providing to promote $6 billion price of this wealth if the UN’s World Meals Prorgramme would supply a transparent plan and open supply accounting of how it could use the cash to resolve world starvation.

A bit later, CNN edited its titled to:

“2% Of Elon Musk’s Wealth Might Assist Remedy World Starvation, Says Director of UN Meals Shortage Group”

So perhaps Elon is placing his cash the place his mouth is? Or perhaps he simply desires to construct a Scrooge McDuck pool of cash at his new Texas mansion.


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