News of Elon Musk promoting Tesla shares has rocked the market currently. The billionaire had offered a complete of two.15 million shares valued at $5 billion on Thursday. The sale comes after a extensively acquired ballot that the Tesla boss had earlier arrange on Twitter to ask the group what they consider him promoting off the shares. At the time, the stocks Musk had proposed to sell had been worth around $25 billion.
After the ballot went dwell, it had garnered over 3.5 million votes, with the bulk saying that he ought to dump the shares. It was a detailed name although as solely 58 had voted in favor of the sale. The remainder of the votes opposed the sale.
Related Reading | AMC Theatres Says Customers Will Soon Be Able To Pay With Shiba Inu
Musk’s easy Twitter ballot had adversely affected the value of Tesla shares. Two days after the ballot went dwell, Tesla shares had fallen 16%, costing Musk $50 billion. Now, it appears Musk went with the bulk as he had finally offered off a few of his shares.
Why Musk Sold Tesla Shares
Billionaire Elon Musk had offered the Tesla shares to pay earnings taxes which he had incurred after a 2.2 million shares acquisition. Like his earlier sale in 2016, the proceeds from the sale had gone to paying the billionaire’s hefty earnings taxes. However, as an alternative of the 10% which he had polled his Twitter followers concerning, Musk had ended up solely promoting 3% of his whole Tesla holdings.
Doge value trending round $0.25 | Source: DOGEUSD on TradingView.com
Musk, who’s at present the richest man on the earth, had begun to promote shares on Monday. He initially offered 934,000 shares out of the two.2 million he had acquired. This had amounted to $1.1 billion which had gone in direction of his earnings taxes, however this proved to be not sufficient as Musk needed to carry out an unplanned sale of one other 3.6 million Tesla shares.
The SpaceX and Tesla CEO had raised $3.88 billion from the unplanned sale over the course of Tuesday and Wednesday, placing the proceeds in direction of earnings taxes as soon as once more. Musk has now offered a complete of 4.5 million shares thus far. If he’s to stay to the unique determine posted on the Twitter ballot, then the CEO might want to offload one other 12.5 million shares.
Crypto Market Speculates On Musk’s Sale
Despite the proceeds from the sale of Tesla shares being put in direction of earnings taxes incurred by the billionaire, the crypto group has had a area day speculating what Musk will do with all the cash. Some had speculated that he would in all probability buy some extra bitcoins so as to add to his current holdings. Musk, nevertheless, didn’t interact any of those speculations.
Now, the canine coin communities, which Musk is a powerful proponent of, have begun to marvel if Dogecoin, his favourite meme coin, will see a few of that cash. Matt Wallace who’s a powerful supporter of Dogecoin mentioned that the market might even see some cash come into the meme coin from the billionaire’s sale.
Elon Musk simply offered 2.15 million shares of Tesla inventory value over $2 billion. More coming.
We might even see a really giant contribution going into #Dogecoin very quickly right here!
— Matt Wallace (@MattWallace888) November 11, 2021
Related Reading | SpaceX Dogecoin-Funded DOGE-1 Mission Set To Launch In Q1 2022
Others are nevertheless skeptical that Musk would make such a transfer. Wallace iterated saying that “Elon has publicly stated he owns Dogecoin. IMO there is a strong chance he will put more in now that he has a lot more cash.” Adding that it was simply hypothesis, therefore his use of the phrase “may” not “will.”
Only one factor is for certain in terms of Musk’s Tesla sale, the proceeds thus far have gone to offset earnings taxes. Whether he would put a few of that cash in direction of crypto is left to be seen.
Featured picture from The World Financial Review, chart from TradingView.com
