Musk "Prepared for All Outcomes"... Expresses Intention to Sell Shares
US Senator "Billionaire Tax Discussion Must Continue"
[Asia Economy Reporter Kim Suhwan] Elon Musk, CEO of Tesla, has reportedly received majority support in a Twitter poll asking whether he should sell 10% of his Tesla shares to liquidate cash.
According to Bloomberg News on the 7th (local time), the Twitter poll asking whether Musk would sell 10% of his Tesla shares officially ended that afternoon.
In the poll asking, "Do you support (Musk selling 10% of his Tesla shares)?", out of approximately 3,519,000 respondents, 57.9% answered "Yes," significantly surpassing the 42.1% who answered "No."
Immediately after the results were announced, Musk tweeted, "I was prepared for any outcome."
Following the poll results, Bloomberg reported that the tokenized cryptocurrency of Tesla shares plunged 6.8% on the cryptocurrency exchange FTX that day. This reflects expectations that Tesla’s stock price would fall after the New York Stock Exchange opens on the 8th if Musk actually sells the shares.
Earlier, as discussions on introducing a billionaire tax gained traction in U.S. political circles, criticism grew over Musk not paying sufficient taxes.
In particular, under the principle that there is no taxation on unrealized gains, Musk, whose wealth is mostly in stock assets, was criticized for paying relatively little tax compared to his holdings.
Additionally, the head of the United Nations World Food Programme (WFP) requested that Musk and other billionaires donate their wealth, stating that "2% of Musk’s fortune could solve the world hunger problem."
Known as the world’s richest person with assets worth $338 billion (approximately 400 trillion KRW), Musk responded to these criticisms by posting a related poll on Twitter on the 6th, asking whether he should sell 10% of his Tesla shares.
If Musk actually disposes of 10% of his Tesla shares based on the poll results, it would mean selling a volume equivalent to 80% of Tesla’s average daily trading volume over the past three months in one go.
If Musk proceeds with the stock sale, it is expected he will liquidate about $21 billion (approximately 25 trillion KRW) in cash.
Although a surge in selling volume is anticipated, experts analyzed that there would be little impact on Tesla’s stock price.
Dan Ives, an analyst at asset management firm Wedbush Securities, said, "(Even if Musk) sells 10% of his shares, there will be little change in Tesla’s stock," adding, "It will rather dilute the criticism regarding taxes and create a positive effect by improving Musk’s own perception."
Although Musk expressed his intention to sell shares based on the poll results that day, U.S. political circles maintain that discussions on the billionaire tax must continue.
Senator Ron Wyden, a Democrat, emphasized, "Whether the world’s richest person pays taxes is not a matter to be decided by a Twitter poll," and added, "It is time to introduce a billionaire tax."
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