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Tesla shares fall 4.5% after Twitter users vote for Elon Musk to sell his stocks

The popular car company Tesla Inc saw a dip in its stocks by 4.5% as investors prepared for Elon Musk’s sale of 10% of his holdings based on a Twitter poll.

The world’s richest person tweeted on Saturday asking everyone if he should sell 10% of his company’s stock. The tweet got more than 3.5 million votes and 57.9% of them voted for Yes.

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Elon Musk previously stated that he has to play with a large number of stock options in the upcoming 3 months that would create a big tax bill. Selling some stocks will give him funds to pay the taxes.

He wrote along with the poll that he only has stocks to pay for the taxes, so he has to sell them.

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Tesla’s shares were already down at $1,167.66 before and with the further decrease it can erase $54 billion from the company’s market value.

Stakes: $21 Billion

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Elon Musk owns about 170.5 million shares since June 30 and 10% of it would be $21 billion according to Friday’s closing price.

He owns a 23% stake in Tesla, in three months, the co-founders sold $259.62 million shares according to Refinitiv data.

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Musk’s pool also has a proposal by U.S. Senate Democrats to tax stocks and other tradable assets of billionaires to support President Joe Biden’s plans of social spending to fill a gap that allows the wealthy to indefinitely comply with capital gains taxes.

Chris Weston who is the head of research at Pepperstone in Melbourne said that selling this massive amount of stocks is a big exposure and reveals things. The buyers step away from such things but Musk’s way is different and it is a proposal to tax the rich with huge gains.

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In October, Tesla ruptured a trillion dollars in market capitalization and became the 5th company to join the club which includes Apple, Microsoft, Amazon and Alphabet.

Davide Madden who is a market analyst at Equiti Capital in London said that Tesla is not going to stay down for a long time and it will come back to the top very soon as it always has.

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So, as the poll won with a ‘yes’ so will Elon Musk sell his stocks just based on a Twitter poll?

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