Elon Musk, part of the Doge Army and Bitcoin proponent, has said that he will sell one-tenth of his entire Tesla stock (TSLA), depending on the outcome of a Twitter survey.
Musk opened a Twitter poll on November 6th, asking Twitter if they support his proposition to sell 10% of his Tesla stock. The move comes following a comment made by the United States Treasury Secretary Janet Yellen who argues that the government should be taxing unrealised gains from shareholders holding stock across the country. This, in a bid to target the exceptionally rich. To find out whether his Twitter audience agrees, Musk stated that he will sell Tesla stock if there is a majority vote from Twitter users.
As it stands, the result closed with 57.9% voting in favour of Musk selling of 19.3 million TSLA shares. At the time of writing, each share is worth $1 222,09, equating to an over $23,582,600,000 sale.
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?
— Lorde Edge (@elonmusk) November 6, 2021
American stockbroker Peter Schiff commented that the economics behind a sale make sense in diversifying his portfolio, but from a social standing, the government is not the most worthwhile move. While Schiff is a Bitcoin critic, his comment stands to reason with the decentralised nature of digital currencies.
From a diversification and valuation perspective the sale makes a lot of sense. The fact that you’ll have to pay taxes on the proceeds however is not a net benefit to society. The public would be better served by you wisely investing that money rather than government wasting it.
— Peter Schiff (@PeterSchiff) November 7, 2021
While he hit a majority vote in support of the sale, 42.1% voted against the idea. Bitcoin bulls were amid the opposition because taxation on unrealised gains will make it extremely difficult to apply to Bitcoin and cryptocurrency earnings. Given the morality of decentralised currency that is founded on blockchain-based currencies, Bitcoin and cryptocurrency proponents are also cautious about the government infringing more on the financial freedom of citizens.
Musk himself did not direct attention to the cryptocurrency market in this, despite his holdings in Ethereum, his advocacy for the memecoin Dogecoin, and his modest accumulation of Bitcoin.