{"id":8829,"date":"2021-11-08T16:07:15","date_gmt":"2021-11-08T16:07:15","guid":{"rendered":"http:\/\/TheNextWeb=1372378"},"modified":"2021-11-08T16:07:15","modified_gmt":"2021-11-08T16:07:15","slug":"a-forensic-analysis-of-elon-musks-twitter-poll-on-tesla-stock","status":"publish","type":"post","link":"https:\/\/www.londonchiropracter.com\/?p=8829","title":{"rendered":"A forensic analysis of Elon Musk\u2019s Twitter poll on Tesla stock"},"content":{"rendered":"\n
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Elon Musk\u2019s tweeting is causing controversy again. This time, the world\u2019s richest person has pledged to sell 10% of his Tesla stock after\u2026 a Twitter poll.<\/p>\n

While billionaires don\u2019t typically let tweets dictate their investment strategies, Musk has several motivations for his unusual approach. They range from slightly shady to risibly egotistical.<\/p>\n

Being a better billionaire<\/h2>\n

Musk launched his poll amid rising anger about inequality. While COVID-19 has had a devastating impact on working people, American billionaires reportedly grew<\/a> more than $2 trillion richer during the pandemic. <\/span><\/p>\n

These extreme contrasts have triggered calls for billionaires to pay new taxes on unrealized gains in their assets. Musk, unsurprisingly, is not a fan of the proposals<\/a>. Instead, he proposed selling some of his Tesla holdings to increase his tax bill.<\/p>\n

\u201cNote, I do not take a cash salary or bonus from anywhere,\u201d Musk tweeted<\/a> on Saturday. <\/span>\u201cI only have stock, thus the only way for me to pay taxes personally is to sell stock.\u201d<\/span><\/p>\n

A majority (57.9%) of the 3.5 million poll respondents voted \u201cYes\u201d to the idea. Musk has pledged to abide by the results, which leaves him poised to sell an estimated $21 billion of stock<\/a>.<\/span><\/p>\n

\n

Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock.<\/p>\n

Do you support this?<\/p>\n

\u2014 Lorde Edge (@elonmusk) November 6, 2021<\/a><\/p>\n<\/blockquote>\n

Tesla shares tumbled after the poll closed, but the fall may only be a short one. In the longer term, Musk\u2019s proposed stock sale could mitigate accusations that the tycoon avoids tax. It also provides a way to promote his company and personal brand.<\/p>\n

Musk was gonna sell anyway<\/h2>\n

Musk has previously committed to selling a chunk of his Tesla stock this year.<\/p>\n

\u201cI have a bunch of options that are expiring next year, so a huge block of options will sell in [the fourth quarter of 2021] \u2014 they\u2019ll have to, or they\u2019ll expire,\u201d he said in September<\/a> at Vox Media\u2019s Code Conference.<\/p>\n

Musk added that when his stock options expire, his marginal tax rate will be over 50%. According to CNBC<\/a>, the magnate faces a looming tax bill on his options of more than $15 billion, which already made a sale before the end of the year highly likely.<\/p>\n

The Twitter poll gave Musk a chance to spin the sale as a public service. Attracting their support could also allay concerns that the move will have a negative impact on Tesla. This brings us to another potential motivation for the poll.<\/p>\n

Moving the market<\/h2>\n

Musk is regularly accused of using Twitter to move markets. The SpaceX founder only needs 280 characters to rally floods of investors, surges in valuations, and SEC investigations.<\/p>\n

Some pundits argue that the Twitter poll is merely another attempt to influence the market.<\/p>\n

Scott Galloway, a bestselling author and professor of marketing at NYU Stern, said Musk was using the poll to conceal his plan to sell overvalued stock.<\/span><\/p>\n

\n

Using Twitter results as cloud cover to monetize $TSLA<\/a> at prices he knows aren\u2019t sustainable without outright telling the market he\u2019s lost faith in its valuation https:\/\/t.co\/sIaGKhk3Vt<\/a><\/p>\n

\u2014 Scott Galloway (@profgalloway) November 6, 2021<\/a><\/p>\n<\/blockquote>\n

Musk himself has previously called Tesla stock overpriced<\/a> \u2014 and its value has risen dramatically since then. That could be another reason to start gradually selling it off.<\/p>\n

However, Musk was not impressed by Galloway\u2019s claims. He described the professor<\/a> as an \u201cinsufferable numbskull.\u201d<\/p>\n

Musk also took a crack at Senator Ron Wyden, who\u2019s called for a new billionaires tax. After Wyden dismissed the Twitter poll, Musk compared his profile picture to a cum face.<\/span><\/p>\n

\n

Why does ur pp look like u just came?<\/p>\n

\u2014 Lorde Edge (@elonmusk) November 7, 2021<\/a><\/p>\n<\/blockquote>\n

The jab had all the charm and humor that we\u2019ve come to expect from Musk. It also illustrated another reason why Musk may have launched the Twitter poll: he has an insatiable desire for attention.<\/p>\n

If the strategy fails to pay off financially, it should at least hasten his development into a self-described \u201cLorde Edge.\u201d<\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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