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Musk’s tweets are shaking the markets again – including Tesla.
Specifically, Elon Musk created a Twitter poll to decide whether he could sell 10% of his Tesla shares. The sale could be worth $25 billion.
As a result, Tesla crypto tokens dropped 6.8%. Tesla shares in premarket trading soon followed, dropping 5%.
The CEO of Tesla and SpaceX decided to engage his Twitter followers on the question of unrealized capital gains.
On Saturday, Musk tweeted that he would sell 10% of his shares if his followers approved.
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
“I will abide by the results of this poll, whichever way it goes,” he added.
“I do not take a cash salary or bonus from anywhere,” Musk said. Therefore, selling his shares is the only way for him to pay taxes personally, he explained.
The results came out with the supporters of the sale on top. Crypto traders were first to react, and Tesla tokens on the FTX exchange fell more than 6%.
Tesla tokens are blockchain instruments that mimic the price of the stock. Amazon, Apple, and other popular stocks and ETFs also have their own tokens.
These tokens allow traders to bet on the stock’s performance – without any actual purchases of the stock.
Initially, the shares of Tesla did not drop substantially drop over the weekend. After-hours stock trading activity is typically lower than that during regular trading hours.
On the other hand, as crypto traders know, crypto markets are always open. However, stock traders soon followed the cue from crypto investors, and Tesla shares dropped in premarket trading.
Tesla Sale Bullish On Bitcoin?
Investors have speculated what Elon Musk will do with the $25 billion in proceeds. Indeed, Musk has a history of moving the market with his tweets alone.
Since the markets follow Musk on investment, any asset Musk buys will likely boost the decision.
Prominent Bitcoin proponents hope that Musk will buy the largest and most established cryptocurrency.
Indeed, Musk is likely to use at least some of the proceeds to buy crypto. Firstly, his company Tesla bought $1.5 billion in Bitcoin in February. Furthermore, he revealed that SpaceX owned Bitcoin as well.