Said and done: Elon Musk has started selling part of his shares of Tesla , putting more than $ 5 billion in shares of the stock back on the market this week . In short, he respected what was decided by his followers on Twitter who had asked if he should have sold the 10% of the shares it holds, in order to prepare to pay a large amount of taxes.
It all stems from the proposal of the Democratic Senator of the United States Ron Wyden to institute a tax designed specifically for billionaires. What happens very often is that large entrepreneurs like Musk – but not only, of course – get paid in shares and options on shares, assets on which, however, taxes are paid only to the time of sale . Considering that these assets can be used as collateral to borrow money and that they often appreciate over time, effectively covering the debt “by themselves”, it is easy for the ultra rich to create a circle in which the sale of their assets does not take place. never and taxes, consequently, are never paid.
Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock.
Do you support this?
– Elon Musk (@elonmusk) November 6, 2021
This billionaire income tax, if it were to come into effect, would change things and hence the Twitter survey and discussion of the latest days. In total, more than 3.5 million people answered Musk’s question with the 57, 9% of respondents who expressed themselves favorably .
To complete the sale of the 10% of its share package it will still take a few days / weeks, considering that the shares cannot be sold all immediately so as not to have an impact on the price at which the share is traded – TSLA has however lost about 13% in the last five days. Among the shares sold there are also 2. 000. 000 of securities that Musk had just acquired thanks to an option stipulated in 2012 at a price of just over $ 6.