The Predicted Tax Bill Follows Elon Musk’s Twitter Votes.
Elon Musk owns 17% of Tesla, which would cost about $200 billion at the current stock price.
With that said, his weekend tweet The Predicted Tax Bill was a pledge to sell about $20 billion of Tesla stock. Elon Musk may already be forced to sell most of his stake to Tesla, even if he didn’t make the unusual promise on Twitter over the weekend. Instead, Musk on Twitter asked Twitter users whether to sell his 10% stake in his company. The poll appears to respond to a Democrat’s proposal to tax the unrealized gains on billionaires.
“Lately, a lot of unrealized profits have been made as a tax avoidance tool, so I’m offering to sell my 10% stake to Tesla,” he tweeted. Musk said he raised the issue because, as CEO of Tesla. He had not received a cashed paycheck and therefore had no way of paying a hefty tax bill without selling some of his stock to Tesla. Which constitutes most of its assets. He closed out the polls on Sunday after nearly 3.5 million votes were cast. With 58% of the votes in favor of the sale. Musk did not confirm what he would do but tweeted after completing the survey. I am ready to accept both results.”
Either way, Musk will soon have to sell most of his shares.
He had nearly 23 million stock options granted in 2012. The Predicted Tax Bill These options have been acquired and will expire in August 2022. Most stock subsidies allow executives to pay taxes for years, and maybe even forever. As long as they don’t sell the shares they acquired. from converting options.
However, Brian Foley, Executive Compensation Consultant, said that many of the options are unlikely to qualify for preferential tax treatment in 2012 because of the size of the grant and the way it is structured. That means Musk will owe income taxes if he uses the budget, which would cost nearly $30 billion at current prices. As a result, musk’s tax bill could exceed $10 billion. Depending on the percentage of options that don’t qualify for preferential treatment.
“They’re a tax bomb that keeps ticking with delays,” Foley said of Musk’s stock. “I can’t think of any way to avoid taxes.”
In addition, Musk may have to sell more shares than necessary to pay his tax bill. He owns 17% of Tesla, which would cost about $200 billion at the current stock price. With that said, his weekend tweet was a pledge to sell about $20 billion of Tesla stock.
