The Limited Times

Now you can see non-English news...

Tesla: Possible sale of Elon Musk's shares

2021-11-08T09:44:26.865Z


Elon Musk had Twitter users vote on the sale of a tenth of his shares in the electric car manufacturer Tesla. A majority is in favor. He wants to stick to the vote.


Enlarge image

Elon Musk: Billions' worth of stocks for sale?

Photo: Patrick Pleul / dpa

According to Forbes, Elon Musk is the richest person in the world.

The block of shares that the Tesla boss held in his company at the end of October was worth $ 230 billion.

Was.

Because with the announcement that he wanted to sell a large part of his shares, the Tesla shares on the stock market lost a lot of their value in the morning.

In Frankfurt, the papers listed in Germany are slipping by around seven percent.

The background to the price decline is a Twitter action by Musks, in which he let his followers vote on whether he should sell a tenth of his 23 percent stake in Tesla - and the users on social media said: yes!

Profits not yet realized

57.9 percent of the survey participants spoke out in favor of it, and a total of more than 3.5 million people took part.

Whether and when he actually throws the shares on the market is open.

However, he confirmed on Twitter that he was prepared for both outcomes of the vote.

Long-term schedules are often set for stock sales by top managers.

This is to avoid accusations that they use internal knowledge for clever deals.

Musk announced on Twitter on Saturday that stock sales were the only way for him to pay his taxes - as he did not get any salary or bonus payments.

He had already spoken about the sale of stocks at a conference appearance in September because he needed the money to pay taxes on stock options due in 2022.

The package would be worth around $ 21 billion at the previous closing price on Friday.

According to calculations by financial service Bloomberg, the package would correspond to 80 percent of the average daily trading volume of Tesla shares.

The value of Musk's fortune has grown strongly in recent months with the steady rise in the price of Tesla shares, at least on paper.

However, according to current US laws, taxes are only due when the exchange rate gains are earned through a sale.

The system that price gains are only taxed when the profit is realized is one reason why US corporations like to buy back their own shares - and thus support the price - instead of paying out the money as dividends.

Critics complain that rich citizens who do not depend on regular dividends can use it to build a fortune without having to pay taxes.

President Joe Biden is considering changing this system as part of a tax reform.

A so-called "billionaire tax" of 23.8 percent on profits from securities, regardless of whether these were realized through a sale or not, is being discussed in Congress.

Musk has criticized the considerations.

Such a tax would affect a total of about 700 taxpayers in the United States who have assets over $ 1 billion or who have $ 100 million in annual income for three consecutive years.

apr / Reuters

Source: spiegel

All business articles on 2021-11-08

You may like

News/Politics 2024-01-31T04:38:57.092Z

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.