Tesla Drops 16% Over Two Days After Elon Musk’s Stock Sale Proposal

After rolling up 29% for the past month, shares of Tesla have come falling back down, as the stock has dipped 16% over the past two days.

After closing Friday at $1,221 per share, Tesla’s stock price has come tumbling down to $1,023.50 at the end of Tuesday’s trading sessions. That’s a 16% drop over two days, one of the biggest drops of the year for the company, whose market cap now stands at $1.01 trillion.

Tesla’s stock price coming down comes after CEO Elon Musk proposed selling 10% of his stock, a poll he asked his followers on Twitter. Musk said he was prepared to follow the outcome of the poll, which saw 3.5 million votes with 57.9% favouring ‘yes’, for the CEO to sell some of his stock.

https://teslanorth.com/2021/11/06/elon-musks-twitter-poll-asks-if-he-should-sell-10-of-his-stock/

According to CNBC, Musk has stock options expiring in August 2022, and his expected purchase comes with a huge tax bill of $15 billion, after taking state and federal taxes into consideration. In order to pay the tax bill, Musk will need to sell some of his stock to get cash, as the CEO takes no salary from Tesla or SpaceX.