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Elon Musk sells Tesla shares – what happens to Bitcoin (BTC)?

Sun 07 Nov 2021 ▪ 10h34 ▪ 4 min read — by Rudy Bauer

American entrepreneur Elon Musk has entrusted the decision to sell 10% of his shares in electric carmaker Tesla to Twitter users, for which he has set up a poll.

The followers to decide

The tweet was published on 6th November at 19:17 (UTC) and has already received 2,583,274 votes, with 11 hours to go. At the time of writing, 56.3% of participants voted yes to Musk’s proposal to sell his shares, the rest were against it.

“Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock. Do you support this?” Musk wrote in his tweet.

He has promised to follow the outcome of the poll. “I will abide by the results of this poll, whichever way it goes. Note, I do not take a cash salary or bonus from anywhere. I only have stocks, thus the only way for me to pay taxes personally is to sell stock,” the entrepreneur added.

The tweet received numerous comments from crypto investors. Some asked Musk to renew BTC payments for the company’s products. Financial analyst Kevin Paffrath noted that Musk’s brother sold more than $100 million (~£74.1 million) worth of Tesla stock on Friday, 5th November. The analyst questioned the executive’s motives. To pay taxes or to please his followers, both seem uncharacteristic of Musk.

What could happen to Bitcoin?

Experts remind that Musk was already due to sell shares in the fourth quarter, so this whole poll thing is playing to the gallery, to some extent. However, representatives of the cryptocurrency community are convinced that Tesla’s Bitcoin investment will attract new capital to the industry from major players.

Commenting on Musk’s poll, MicroStrategy CEO Michael Saylor said, “If the goal is diversification, an alternate strategy to consider is converting the TSLA balance sheet to a Bitcoin Standard and purchasing $25 billion (~£18.5 billion) in BTC. That would deliver diversification, inflation protection, & more upside for all investors in a tax efficient manner.”

In early November, Musk became the first person in history to have a fortune in excess of $300 billion (~£222 billion). Musk’s rise in wealth began as Tesla shares appreciated on the NASDAQ exchange after trading opened.

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Rudy Bauer avatar
Rudy Bauer

Photographe, Vidéaste, webdesigner et enfin rédacteur pour CoinTribune: l'image, le digital et la blockchain sont mon dada.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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