Tesla shares slide 12 percent as Musk’s stock-sale pledge continues to reverberate.

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Tesla Stock plummeted for the second day in a row, falling 12% on Tuesday in an ongoing shake-up after Elon MuskThe founder of the company suggested on Twitter to sell 10 percent of his stake in Tesla.

Losses on Tuesday drove stocks more than 16 percent this week, nearly wiping out the streak of gains seen in the two weeks following Tesla’s market value. exceeded $ 1 trillion for the first time… From the end of Friday Tesla lost about $ 200 billion in market valuation, although it remained just above the $ 1 trillion threshold at the close of trading on Tuesday.

Saturday mister musk published Twitter poll asking if he should sell some of his Tesla shares, saying that he “will stick to the results of this survey, anyway.” About 58 percent of respondents voted to sell his shares.

Musk owns 17 percent of Tesla, which is about $ 200 billion at the time of the poll on Twitter. His tweets over the weekend promised to sell about $ 20 billion worth of shares.

Regardless of the Twitter poll, Mr. Musk may soon have to sell most of his shares anyway, reports Stephen Gandel for The New York Times Proposal Book… That’s because Musk owns nearly 23 million stock options that expire in August 2022.

Most share grants allow executives to avoid paying taxes for many years, and possibly forever, if they do not sell the stock received from the option conversion. But the structure of Mr. Musk’s options means they may not fully meet the criteria for preferential taxation, and he could owe more than $ 10 billion in taxes.

Separately on Monday, Mr. Musk’s brother, Kimbal muskdisclosed in normative documents that on Friday he sold about $ 109 million worth of Tesla shares.

  • The S&P 500 fell 0.4 percent, the first daily decline after eight days of gains.

  • Oil prices jumped: West Texas Intermediate crude rose 2.7% to $ 84.15 a barrel.

  • The yield on government bonds was lower, with the yield on 10-year Treasury bonds declining five basis points to 1.46 percent.



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