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Why did Alan Musk’s Twitter poll fall Tesla shares?

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shares of Tesla fell 7.5 per cent in premarket trading on Monday. This was due to the reaction of followers in a poll post by Alan Musk on Twitter. In the post, Alan Musk took to Twitter to sell 10 per cent of his holding in Tesla.

Tesla CEO and world’s richest man Musk tweeted that he would sell 10 per cent of his stock if users of social media networks approved the proposal.

Shares of electric car maker Tesla fell 6.2 per cent to close at $1,146.43 (about Rs 84,900). Shares listed in Frankfurt fell nearly 7 per cent to close at 989.10 euros (about Rs 84,700).

The Twitter poll asked Musk’s followers if he should sell the stock. He got more than 3.5 million votes on the poll, and 57.9 percent voted “yes.”

Musk had earlier said that he would have to use a large number of stock options in the next three months, which would create a big tax bill. Selling some of their stocks will enable them to get funds to pay tax.

“I was ready to accept any outcome,” Musk said after the voting was over. Market partners expected speculators to try to push their sales forward.

Musk’s stake in Tesla was about 170.5 million shares as of June 30, Reuters calculated. If he sales 10 per cent of it, his value will be close to $21 billion (about Rs 1,55,480 crore) based on the latest closing.

Musk, including stock options, holds a 23 per cent stake in Tesla, the world’s most valuable car company.
From three months to November 4, the company’s insiders sold shares worth $259.62 million (approximately Rs 1,922 crore) in Tesla, according to Refinitiv Eikon data.

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