This follows the Tesla CEO's tweets from over the weekend about selling 10% of his stake in the company
Exhibition March 9, 2020 in Washington, DC.Tesla CEO Elon’s Musk’s outlandish tweets over the weekend about selling 10% of his stake in Tesla are sending the stock in a tailspin.
Tesla shares tumbled nearly 10% as of 1:30 p.m. ET Tuesday to $1,044.96 per share, erasing $145 billion in market value for the electric car maker. It’s the second day of declines; Tesla is down 14% since Monday morning, though the company’s market cap still sits above $1 trillion and its shares are still up 148% over the last year.
Musk’s fortune fell $28.5 billion as of 1:30 p.m. ET Tuesday as a result of the plunge, pushing his net worth to $277.4 billion, down from $304.3 billion at the close of trading on Monday. He’s still the richest person in the world, according to, ahead of Amazon founder Jeff Bezos, the world’s second-richest person at $204.1 billion. Musk became the richest person to ever walk the planet last week when his fortune reached $300 billion for the first time.
The decline in Tesla shares started after Musk created a Twitter poll over the weekend asking if he should sell 10% of his stake in Tesla, prefacing the suggestion with a statement about taxes: “Much is made lately of unrealized gains being a means of tax avoidance.” . It was a response to a failed Democratic proposal last month to tax billionaires’ unrealized gains in public companies as a means of harvesting tax income from billionaires.
in capital gains taxes to the federal government. It’s likely he’ll use the proceeds to pay additional taxes to exercise a tranche of Tesla stock options that expires next year.
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