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Elon Musk Offloads $5 Billion in Tesla Shares

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Elon Musk Offloads $5 Billion in Tesla Shares

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Recently, the CEO of Tesla and one of the richest individuals globally, Elon Musk, raised a query to his Twitter followers. He posted, “There is much talk about using unrealized profits to avoid taxes, so I suggest selling 10% of my Tesla shares. Do you agree?”

He included a survey for his followers, and upon closure, 57.9% voted in favor, while 42.1% were against it. Hence, Musk followed through with his proposal by selling approximately 4.5 million of his personal Tesla shares, amounting to around $5 billion. It is reported that a part of these sales was to meet tax requirements.

During the poll period on Musk’s Twitter, the uncertainty affected Tesla’s stock value. It dropped by 15% on Tuesday, only to recover by 4% on Wednesday. Prior to the sale, various analysts speculated on the potential implications. Some were confident that it wouldn’t significantly impact Tesla as a company.

Mark Arnold, the chief investment officer at Hyperion Asset Management, said, “The stock is quite liquid, and it’s not a significant portion of the total issued shares, so it shouldn’t have a substantial impact… we are optimistic about the company’s future.”

Others expressed concerns that a substantial sell-off might influence consumer trust in CEOs. Ken Griffin, the CEO of Citadel, stated at the DealBook Online Summit, “Visionaries like Elon Musk and Jeff Bezos have revolutionized our lives, and we prefer them to lead their companies as long as they possess the drive and determination to propel the business forward.”

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