Elon Musk offers to sell more Tesla shares in tax workout with Bernie Sanders

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Tesla CEO Elon Musk argued with Bernie Sanders on Sunday after the US senator asked the wealthy to pay their “fair share” of taxes.

“We have to demand that the extremely wealthy pay their fair share. Period,” Sanders wrote on Twitter. Addressing the 80-year-old senator, Musk responded by saying “I always forget you’re still alive.”

The billionaire CEO who had already offloaded $ 6.9 billion (about Rs 51,330 crore) of shares in the electric car company as of November 12, further wrote: “Do you want me to sell more shares? , Bernie? Just say the word. “

Sanders’ tweet comes against the backdrop of Washington’s efforts to raise taxes on the super-rich.

Democrats in the US Senate have unveiled a proposal to tax billionaire stocks and other marketable assets to help fund President Joe Biden’s social spending program and close a loophole that has allowed them to defer earnings taxes indefinitely in capital.

A week ago, Musk tweeted that he would sell 10% of his shares if users of the social media platform approved of the move. About 57.9% of people voted to sell shares.

Tesla shares closed lower on Friday, down 2.8 to $ 1,033.42 (around 76,880 rupees), ending an 11-week winning streak. Shares have risen more than 46% this year after a strong rally in October.

Share sales, which marked the first time Musk had cashed in a stake of this size since the company was formed in 2003, were massive by capital market standards, eclipsing the initial public offerings of most companies.

By urging Twitter users to green light the move, he has blunted potential criticism of the cash out at a time when Tesla’s valuation has turned frothy and stocks are hitting record highs.

© Thomson Reuters 2021


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