The billionaire asked his 63 million followers in a Twitter poll if he should sell 10 percent of his stock in Tesla. They voted yes
Photo: Bloomberg via Getty Images Tesla founder Elon Musk’s casual approach to posting has erased millions for shareholders in the past, like last year when he tweeted “Tesla stock price too high imo,” causing a nine percent dip. Due to a Twitter poll he put up over the weekend, he may bear the brunt of the cost this time mostly by himself.
On Saturday, the billionaire asked his 63 million followers if he should sell 10 percent of his stock in Tesla, as a way to voluntarily increase his tax burden. Musk — who does not take a taxable salary and paid nothing in federal income taxes in 2018 — would be required to pay taxes on about $21 billion of his stake in the electric car company, because he is required to pay taxes on options that he exercises.
When the poll closed on Sunday afternoon, almost 58 percent of the 3.5 million people that voted determined that Musk should get rid of the stock. “I was prepared to accept either outcome,” Musk tweeted after the results came in, suggesting he is ready to eat as much as $5 billion in taxes on the sale. As Bloomberg notes, Tesla shares are once again expected to fall because of a tweet when trading begins on Monday.
As Democratic Senator Ron Wyden wrote, this may not be the most rational way to tax the richest man in the world. “Whether or not the world’s wealthiest man pays any taxes at all shouldn’t depend on the results of a Twitter poll,” the Senate Finance chairman tweeted, adding: “It’s time for the Billionaires Income Tax.
Though Musk claims he is considering spending $6 billion to help end world hunger if the United Nations World Food Program can explain “exactly” how his money will be spent, the proposal on Sunday may not be guided entirely by altruism. CNBC reports that Musk is facing $15 billion in taxes on his Tesla shares in the coming months, whether or not his Twitter followers hit him with the bill.
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