Tesla shares slide 5% after Elon Musk proposes selling 10% of his stock in a Twitter poll

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Tesla shares slide 5% after Elon Musk proposes selling 10% of his stock in a Twitter poll
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The fall comes after Musk asked his 62.5 million Twitter followers to determine the future of a chunk of his Tesla holdings.

with the company yet. Before he made that statement, he taunted investors who were short shares of Tesla on Twitter, writing: "Tesla Hertz shorts."Elon's tax bill

No matter the results of the poll, Musk would have likely started selling millions of shares this quarter. The reason: a loomingMusk's options expire in August of next year. Yet in order to exercise them, he has to pay the income tax on the gain. Since the options are taxed as an employee benefit or compensation, they will be taxed at top ordinary-income levels, or 37% plus the 3.8% net investment tax. He will also have to pay the 13.

Combined, the state and federal tax rate will be 54.1%. So the total tax bill on his options, at the current price, would be $15 billion. Musk hasn't confirmed the size of the tax bill. But he tweeted: "Note, I do not take a cash salary or bonus from anywhere. I only have stock, thus the only way for me to pay taxes personally is to sell stock."

Of his considerable holdings, Musk has options for 22,862,050 shares at $6.24 due to expire on Aug. 13, 2022. These options were awarded to him in 2012.

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