On Monday, Tesla valuations dropped under $1 trillion during the trading hours before recovering back. This happened as Musk hinted at selling more TSLA stock in his chat with Bernie Sanders.
On Monday, November 15, Tesla Inc (NASDAQ: TSLA) continued with its losses on Wall Street as the stock price slipped under $1000 levels. As of now, the TSLA stock is nearly 20% down from its all-time high earlier this year.
There’s been a lot of buzzes currently going around taxing the super-rich, and everyone’s eyes are on the world’s richest man Elon Musk. The billionaire has been open to liquidating his Tesla stock which has put some downward pressure over the last few days.
Last week U.S. Senator Bernie Sanders demanded that the “extremely wealthy pay their fair share” in taxes. Sanders has been in favor of taxing the ultra-rich more. However, Sanders didn’t mention what according to his is a “fair share”. Responding to it and putting it straight, Musk asked if 53% was reasonable.
Ok, how much do you think is fair? Does 53% seem reasonable?
— Elon Musk (@elonmusk) November 15, 2021
Elon Musk has so far offloaded a staggering 6.3 million TSLA shares worth $6.9 billion. As a result, Tesla has lost over $187 billion in market value over the last week. Note that Musk’s Tesla stock sale comes following a Twitter poll he conducted a week ago wherein a majority voted in favor of the billionaire offloading some of his holdings.
During yesterday’s trading session, Tesla’s valuations took a dive under $1 trillion as the share price slipped under $995 levels during the day trading. However, the share price quickly surged in the closing hours moving past $1,000 again and closing at $1013 levels.
TSLA Stock Losses: Elon Musk Pledges of Selling 10% Holdings in Tesla
Post his Twitter poll, the tech billionaire pledged to sell 10% of his holdings in Tesla. As said, Musk has already offloaded 6.3 million shares and needs to offload an additional 10 million shares to reach his desired milestone. In a word with Reuters, Kunal Sawhney, CEO of equity research firm Kalkine Group said:
“Tesla shares have been sinking post the sale based on a Twitter poll last week. And Musk’s Sunday tweet deriding a senior politician may add pressure on the stock in the coming weeks. By offloading shares worth billions of dollars, Elon Musk is likely to accrue a tax bill of around $15 billion.”
Musk currently holds a 20% share in Tesla which has come down over the years. Musk recently noted that one of the major sources for his holdings dilution is giving employee stock options. In a tweet response, Musk noted that “that is the other major source of dilution. All employees receive stock after a year at Tesla and we now have over 100,000 employees worldwide”.
The Tesla valuations soared past $1 trillion quickly after securing its biggest-ever order from car-rental firm Hertz. Although the Tesla order book remains strong, the world’s largest automobile company struggles with the issue of chip shortage. In one of his recent tweets, Musk mentioned:
“Tesla is constrained by chip supply short-term & cell supply long-term. Not possible to produce additional vehicles in volume until both constraints are addressed.”
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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