Tesla (TSLA) stock falls as Elon Musk plans to sell 10% of his stake

Electrek.co by Fred Lambert November 8, 2021

[{"selector":"#anim-f74aba4f-dabf-4b88-a101-f2656ff535c7","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Tesla’s (TSLA) stock is falling by as much as 5% in pre-market trading – seemingly putting an end to an incredible rally.

[{"selector":"#anim-3e2f5e23-487c-4938-829c-6f7fd1064102","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] One of the main catalysts appears to be Elon Musk confirming plans to sell 10% of his stake in the company over pressure that the rich don’t pay taxes. But is he being genuine?

[{"selector":"#anim-a2c7a222-9790-4241-82d6-e4fe80f621a8","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Tesla’s stock has been on an historic run over the last few weeks, adding hundreds of billions in market capitalizing to surpass $1 trillion.

[{"selector":"#anim-ffaa3a40-df1c-4379-a12c-131e7fc7bbcb","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] This weekend, CEO Elon Musk floated an idea that is likely at least partly responsible for putting a stop to the rally.

[{"selector":"#anim-8f28ccb9-f73d-46e7-985b-4179ebfcbcd4","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] He said that he would sell 10% of his stake in Tesla if a Twitter poll would agree, which it unsurprisingly did.

[{"selector":"#anim-a1185237-12ef-44f7-bea2-7a24ef99be3c","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Over 3.5 million Twitter users voted on the poll and almost 58% of them voted to sell:

[{"selector":"#anim-52843428-3150-4d4e-bb81-89b79e57d4ab","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Musk said that if Twitter votes for it, he will follow through – meaning he will start selling millions of Tesla stocks.

[{"selector":"#anim-9c5667e4-1543-4192-9a2b-93d3726bf4e0","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Normally, I’m quick to defend Musk when he is accused of having ulterior motives, but I think it’s fair this time to dig deeper . Read Electrek's take on our website.