World’s richest man Elon Musk lets Twitter decide if he sells 10% of Tesla stock

Elon Musk — the world’s richest man — has promised to sell 10 per cent of his Tesla stock if his followers on Twitter tell him to.

Tesla CEO Elon Musk. Picture: AFP

Tesla CEO Elon Musk‘s Twitter poll asking if he should sell 10 per cent of his shares has ended — with the masses voting in favour of him selling the Tesla stock.

The vote, which closed this morning, means he could sell $28.14 billion (US$25 billion) worth of stock — amid a debate on whether the mega-rich should pay more tax.

“Much is made lately of unrealised gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock. Do you support this?” he asked his 62.6 million Twitter followers.

He’s evidently serious, as the world’s richest man followed up by writing, “I will abide by the results of this poll, whichever way it goes.”

Tesla CEO Elon Musk. Picture: AFP

He further explained, “Note, I do not take a cash salary or bonus from anywhere. I only have stock, thus the only way for me to pay taxes personally is to sell stock.”

There were 3,519,252 votes and 57.9 per cent voted in favour of him selling the stock — which could leave him with a hefty tax bill. The poll closed at 6.10am, Monday AEST.

Tesla’s market capitalisation is about US$1.22 trillion and Mr Musk owns 193.3 million Tesla shares - worth about US$250 billion. And 10 per cent of that is, obviously, about US$25 billion.

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

The poll is presumably a response to the proposed “billionaires tax” being pushed by US Democrats.

Oregon Senator Ron Wyden has proposed a new tax on unrealised gains on publicly traded assets for some of the wealthiest Americans.

He responded to Mr Musk’s poll by writing, “Whether or not the world’s wealthiest man pays any taxes at all shouldn’t depend on the results of a Twitter poll. It’s time for the Billionaires Income Tax.”

In October, when releasing details of the proposal, Mr Wyden said, “There are two tax codes in America. The first is mandatory for workers who pay taxes out of every paycheck. The second is voluntary for billionaires who defer paying taxes for years, if not indefinitely.

“The billionaires income tax would ensure billionaires pay tax every year, just like working Americans. No working person in America thinks it’s right that they pay their taxes and billionaires don’t.”

At the time, Mr Musk responded by writing, “Eventually, they run out of other people’s money and then they come for you.”

Mr Musk also reportedly proposed selling off some Tesla stock during the Code Conference in September.

“I have a bunch of [stock] options that are expiring early next year, so that’s a huge block of options we’ll sell in Q4,” he told journalist Kara Swisher.

She had asked Mr Musk if he was surprised at the Tesla stock’s meteoric price rise. This morning it was selling for US$1,222.09.

Mr Musk responded, “I have gone on record and said I think (Tesla’s) stock price is too high, in my opinion.”

He later said, “What am I supposed to do? I’m not the one making it go up.”

Mr Musk’s poll was likened to a “coin flip” by Social Capital CEO Chamath Palihapitiya.

“We are witnessing the Twitter masses deciding the outcome of a $25 billion coin flip,” he wrote on Twitter.

Mr Musk’s net worth is estimated to be US$338 billion, according to Bloomberg.