Tesla stock token prices on the FTX crypto exchange dropped by over 6% following a tweet from Musk. The company’s CEO asked his followers whether he should sell 10% of his shares, to which 55% said yes.
Tesla tokens on the FTX crypto exchange dropped by over 6% after recent tweets by Elon Musk. The CEO of the electric vehicle manufacturer asked his followers on Twitter whether he should sell 10% of his shares in the company. The response was a yes — which led to the price dropping.
Data from the FTX exchange shows that the share price of the stock dropped to $1,139, which was well below the price on the equities market. It will be interesting to see where the stock market stands on the move, which was confirmed during the afternoon of Nov 7.
The 10% of shares that Musk will be selling is worth roughly $24 billion, an enormous sum by any standards, and one boosted by TSLA gains over the past 12 months. Musk has said that the sale is to address the fact that he has not been paying taxes.
With the sale of his shares, Musk’s gains from the taxes would become realized gains, which is taxable. If investors hold on to their stocks without selling them, these are unrealized gains — which aren’t taxable. Mush has argued against the taxing of unrealized gains. It was after speaking about this point about taxation of unrealized gains that Musk made the Twitter poll.
The move is yet another attention-grabber from the charismatic entrepreneur, who has kept the world’s market on edge with his tweets. Speaking about traditional sectors and cryptocurrencies alike, Musk’s tweets have had an enormous impact on markets, which often results in major jumps in price.
Just another Musk gimmick?
Musk is no stranger to drawing controversy, especially in the online space. His remarks and actions have won many over — but also irked a fair few.
With respect to the cryptocurrency space, Musk has talked about dogecoin, which he temporarily led as an April Fool’s joke. But his tweets on the currency have sent the price skyrocketing, which arguably launched a widespread influx of investments into meme coins. He has also talked about Shiba Inu (SHIB) indirectly, which again, unsurprisingly, sent the price up.
But he has also upset the cryptocurrency community with some misguided remarks on scalability. Vitalik Buterin shared some insights on this following the tweets.
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