(Bloomberg) — Elon Musk’s social media followers have spoken: The Tesla Inc. chief should sell 10% of his stake in the electric-car maker.
A majority of 3.5 million Twitter users — 58% — said they’d support such a sale in a Twitter poll that Musk launched Saturday and closed shortly after 2:15 p.m. Sunday in New York. The stake would be valued at about $21 billion based on 170.5 million Tesla shares he holds.
“I was prepared to accept either outcome,” Musk said in a tweet after the poll closed.
A cryptocurrency version of Tesla’s shares trading on FTX suggests Musk’s tweeting may cause the shares to fall when Wall Street wakes up Monday. They were fetching $1,137.60 as of about 5:20 p.m. Sunday in New York, 6.9% lower than Friday’s close for the real stock.
The crowd-sourcing exercise is the latest example of Musk’s long history of using Twitter and his legions of fans on the platform to stoke interest in his company, sometimes pushing the envelope with tongue-in-cheek tweets. The world’s richest person proposed the move in a tweet citing recent discussions about the ultra-wealthy hoarding unrealized gains to avoid paying taxes. Musk doesn’t take a salary, but has to pay taxes on any stock options that he exercises.
Musk’s tweets have moved Tesla shares in the past, sometimes drawing the ire of authorities. Musk in 2018 agreed to get approval from a Tesla attorney prior to communicating material information to investors as part of a settlement with U.S. securities regulators. It wasn’t clear whether that official previewed Musk’s Twitter poll.
While large sales by insiders are often seen as a negative signal, a sale of this size won’t alter Tesla’s story in a meaningful way, said Dan Ives, an analyst at Wedbush Securities. Demand remains high for Tesla shares among both institutional and retail investors, he said. The unorthodox step of getting buy-in from fans and investors via a poll may also ease any concerns.
“Selling 10% is probably going to add 1.5% to 2% to the float, so it doesn’t really significantly move the needle,” Ives said in a phone interview. “I do believe that him doing it in this way definitely would soften the blow and would help the perception as well.”
The automaker’s stock has soared 73% this year to $1,222.09 as of Nov. 5, giving it a valuation of $1.2 trillion. The number of shares that Musk — its chief executive officer and largest shareholder — could be set to offload is equivalent to 80% of Tesla’s average daily trading volume in the past three months. The amount of stock he may potentially sell would be even greater if his options are included.
Tesla’s stock won’t officially begin trading again until the early morning hours of Monday in the U.S.
Musk’s fortune stands at $338 billion, according to the Bloomberg Billionaires Index. About one-quarter of that consists of Tesla stock options that he’s free to exercise at any time. The securities come from two big awards he received in 2012 and 2018. The older contracts expire in August next year.
If he exercised all of the options now and immediately sold the shares, they would net him $95.9 billion before taxes.
Musk may be signaling that he wants liquidity beyond the cash he’s secured by borrowing against his holdings in the EV maker. Last week he suggested he’d sell some stock if the UN could prove $6 billion could help alleviate world hunger. For years, Musk has said he would be the last to ever sell stock, and has often added to his position when Tesla has raised money from Wall Street so that his stake is not diluted.
Musk moved to Texas, which has no state personal income tax, in late 2020. But as Tesla’s market value has skyrocketed and his personal wealth has ballooned, Musk has become a symbol of rising inequality — something he appears to be sensitive to. He was among the billionaires mentioned in a Pro Publica investigation of how the ultra rich avoid paying taxes, and has become a target of members of Congress who are pushing a billionaires tax.
“Whether or not the world’s wealthiest man pays any taxes at all shouldn’t depend on the results of a Twitter poll,” U.S. Senator Ron Wyden, an Oregon Democrat, wrote in a tweet Saturday. “It’s time for the Billionaires Income Tax.”
On his way to becoming the world’s richest person, Musk has made millionaires — and even at least one billionaire — among some of his fans, employees and other investors. Among them is Leo KoGuan, a Singapore-based retail investor and business owner who used his already considerable wealth to amass more than $7 billion in Tesla shares.
Count KoGuan among those Twitter followers who say it’s time for Musk to take some money out of the automaker, even if it is just to use it in Musk’s other ventures exploring space and neural networks. “Politically and from tax point of view and given that Elon is poor in cash, he has no choice but to sell his stakes to pay tax and to be cash-rich,” KoGuan posted on Nov. 6.
(Updates crypto trading in fourth paragraph and adds reference to regulatory agreement in sixth)
First seen at Bloomberg
Twitter likely to roll out ‘Reactions’ feature soon
After unveiling several features this year, micro-blogging site Twitter is reportedly readying new features, including Reactions, Downvotes and Sorted Replies for iOS users.
According to reverse engineer Nima Owji, the Reactions feature, which started being tested a couple of months ago, is set to launch soon, reports 9To5Mac.
With four new reactions, “tears of joy,” “thinking face,” “clapping hands” and “crying face,” this feature is designed to give users the ability to better show how conversations make them feel and to give users “a better understanding of how their Tweets are received”.
Citing the reverse engineer, the report also mentioned that the micro-blogging site is now able to store data about the downvotes feature, which is another indicator that this function will be released sooner rather than later.
The report also notes that the company changed the downvote position as well. It has even added a new tab explaining how downvotes work.
This month, the company has rolled out its in-app tipping feature to all Android users above the age of 18, following the iOS launch in September.
Twitter said the “Tips” feature is geared toward users looking to get a little financial support from their followers through Cash App, PayPal, Venmo and Patreon directly through the app.
Elon Musk has sold more than half of the Tesla stock that Twitter informed him.
Tesla shares have fallen 10% since Musk conducted a Tweet poll about the sale. They dropped more than 17% within the first few days following the Nov.
Twitter Investigating Bug Causing Unexpected Logouts on iOS 15
Posts on Twitter over the last several hours have shown users experiencing the bug, with some sharing frustrations that the app is requiring them to log back into Twitter upon every app launch. While some of the reports lack the specificity that the bug is happening on iOS devices, it seems likely to be the case following the acknowledgment from Twitter itself.
WHY IS TWITTER LOGGING ME OUT OF ALL OF MY ACCS???? I HAVE 8 TWITTER ACCS AND DO YOU KNOW HOW HAED TO LOG IN ALL OF THEM???????? IVE BEEN DOING IT 2 TIME ALREADY SINCE OCTOBER
— kyle (@leeknowonIyfans) November 24, 2021
I almost got a heart attack when I tried to get in my Twitter and it wanted me to log in?? I never logged out 😭😩😭
— Enny Does It All❤ (@Queen_Enny19) November 24, 2021
Users impacted by the bug are advised to ensure they’re running the latest Twitter version from the App Store and monitor the company’s support account for updates.
WhatsApp will now make it easier for users to end conversations and send cute stickers, finds a new update in their beta version
POV: Facebook’s Change to Meta Blurs Lines Even Further
Twitter likely to roll out ‘Reactions’ feature soon
Facebook’s centralized metaverse a threat to the decentralized ecosystem?
Facebook hackers target small business owners to scam money for ads
Social Media Marketing Trends To Watch In 2022
Facebook and Instagram to launch Mena campaign to prevent child exploitation online
Facebook to shutter its facial recognition system, citing ‘societal – USA Today
Facebook connects its Workplace to Microsoft Teams • The Register
Why is Facebook shutting down its facial recognition system and deleting ‘faceprints’? – The Guardian
Samantha’s cryptic Instagram posts bother fans – The Siasat Daily
The RNC Is Raising Funds Off Trump’s New Social-Media Platform
WHATSAPP3 days ago
WhatsApp may soon allow users to react to messages
FACEBOOK6 days ago
Upgrade Your Facebook Marketing Strategy for 2022
INSTAGRAM6 days ago
How to Get More Exposure on Instagram
INSTAGRAM5 days ago
How many hashtags should you use to get the most ‘Likes’ on Instagram?
PINTEREST3 days ago
Getting the Most Out of Shopify
WHATSAPP5 days ago
WhatsApp now lets you create your own stickers
INSTAGRAM1 week ago
Instagram’s effects on children being probed by US states
TWITTER5 days ago
Should Twitter politely warn users not to tweet hate speech?