Tesla shares slide after Elon Musk asks Twitter if he should sell – CBS San Francisco

PALO ALTO (CNN) – More than $ 30 billion was wiped from Tesla’s market value on Monday after millions of Elon Musk’s Twitter followers voted in favor of his sale of 10% of his shares in the Bay Area-based electric car company.

Tesla shares fell about 3% in morning trading in New York City, recovering slightly from a 6% drop before market.

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Musk tweeted on Saturday that he would let Twitter users decide whether to sell 10% of the 170.5 million shares he owns in Tesla. The Twitterverse verdict: 58% of the more than 3.5 million voters had said “yes” at the close of the poll on Sunday.

“There has been a lot of talk lately about unrealized gains as a means of tax evasion, so I am proposing to sell 10% of my Tesla shares. Do you support this? Posted the CEO of Tesla.

He added that he follow the results of the survey in any way went, but has yet to announce what it will do next.

Musk has clashed with regulators in the past for posting tweets that moved Tesla’s share price, without first consulting the board of directors or fully verifying the important information it provides to shareholders.

In 2018, the SEC charged him with fraud, after he tweeted that he was considering privatizing Tesla.

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To settle the charges, Musk agreed to a court-approved deal that required Tesla directors examine all social media publications containing “material” information intended for shareholders.

Months later, after being called out for defying the order, the rules were changed to include a specific list of topics Musk needs permission to tweet on. The list includes tweets about the company’s financial situation, production figures or new lines of business.

Musk receives no salary from Tesla. Its 170.5 million shares of Telsa were worth $ 208.3 billion at the close of trading on Friday. Priced at $ 1,222.09 per share, 10% would be valued at $ 20.8 billion.

He owns 80% of those 170.5 million Tesla shares since the company’s initial public offering in 2010. In addition, he has the option to purchase an additional 73.5 million shares. It is not clear whether those shares would be counted in his holdings if Twitterverse convinced him to sell 10% of his stake in the company.

As of Sunday, Musk was the richest man on the planet with a total net worth of $ 338 billion, according to the Bloomberg Billionaires Index.

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