Musk endeavours

[absolutezero]

I suspect this is Musk showing the Democrats that their "Billionaire Tax" Bill is stupid.
They want to charge 'billionaires' (at first and then everyone else as with all taxes) Capital Gains Tax on unrealised gains.

I think he's trying to crash the S&P 500 (or Tesla at least) to show the effect this will have.

CEO sells large amount of stock to pay the hypothetical tax.
Share price crashes.

Media: "Look at the effect on your pensions."

Democrats' Bill ends up in the bin.
Job done.

[odysseus2000]

I don't think the taxing of unrealised gains ever had a prayer of getting into law, it would be near impossible to manage. You pay tax on unrealised gains, then the gain goes away, so you are due a big tax refund etc.

There have been various attempts to introduce something similar in the UK, here on property (since we don't have so many wealthy folk as does the US), but they have all been dumped as being impractical.

Still leaning to the idea that this is Elon trying to make friends with the President.

Anyhow I have still no idea what will happen to Tesla equity price on Monday, still sort of leaning towards a gap down, but without too much conviction and no clue after that, but as usual wait and watch will apply to how I react to this.

Regards,

[BobbyD]

I don't think the taxing of unrealised gains ever had a prayer of getting into law, it would be near impossible to manage. You pay tax on unrealised gains, then the gain goes away, so you are due a big tax refund etc.

It's thoroughly unsatisfactory, but you'd likely end up with an offset against future gains, and hence no guarantee of actual benefit, similar to the way you can carry forwards capital losses in this country for use in subsequent years.

Still leaning to the idea that this is Elon trying to make friends with the President.

It really isn't. Musk is trying to burn Biden's house down.

[BobbyD]

Nov 8 (Reuters) - Tesla Inc shares fell 7.5% in premarket trading on Monday as investors prepared for its chief Elon Musk's proposed sale of about a tenth of his holdings in the electric-car maker following his Twitter poll.

- https://www.reuters.com/business/tesla- ... 021-11-08/

[odysseus2000]

BobbyD
It really isn't. Musk is trying to burn Biden's house down.

So you think Musk wants to make it easy for Trump to get elected in 2024?

Regards,

[BobbyD]

BobbyD
It really isn't. Musk is trying to burn Biden's house down.

So you think Musk wants to make it easy for Trump to get elected in 2024?

Regards,

Covid denying, anti-regulation teenager who thinks the rules don't apply to him, uses baseless insults to refer to his opponents and runs/ran his own PR department on twitter. Which one am I talking about?

[odysseus2000]

Creating the perception that the Biden administration has caused a billionaire to pay taxes is not good for Biden?

Regards,

[BobbyD]

Creating the perception that the Biden administration has caused a billionaire to pay taxes is not good for Biden?

Regards,

That isn't Musk's intention. His intention is to cause disruption in the market and associate that disruption with Biden's tax plan.

[odysseus2000]

Creating the perception that the Biden administration has caused a billionaire to pay taxes is not good for Biden?

Regards,

That isn't Musk's intention. His intention is to cause disruption in the market and associate that disruption with Biden's tax plan.

Ha Ha

Best conspiracy theory I have heard in a while, but it makes no sense.

Further thoughts based on what sam (sam@smartertrader) on Twitter has tweeted:

We don't know if Musk has a buyer lined up, possibly Berkshire, Softbank...

We don't know if Musk will announce his sale and then split the stock.

If stock does tank after sale, Musk could re-buy everything that he has sold.

Overall I don't now think the odds on Tesla equity selling off strongly are good and it would not surprise me if the stock ends up higher at todays close than on Friday.

Regards,

[BobbyD]

Creating the perception that the Biden administration has caused a billionaire to pay taxes is not good for Biden?

Regards,

That isn't Musk's intention. His intention is to cause disruption in the market and associate that disruption with Biden's tax plan.

Ha Ha

No, that was your conspiracy theory that Biden was trying to kill Tesla at the behest of the UAW, all of about 2 days ago...

[absolutezero]

Nov 8 (Reuters) - Tesla Inc shares fell 7.5% in premarket trading on Monday as investors prepared for its chief Elon Musk's proposed sale of about a tenth of his holdings in the electric-car maker following his Twitter poll.

- https://www.reuters.com/business/tesla- ... 021-11-08/

Bingo!

[odysseus2000]

That isn't Musk's intention. His intention is to cause disruption in the market and associate that disruption with Biden's tax plan.

Ha Ha

No, that was your conspiracy theory that Biden was trying to kill Tesla at the behest of the UAW, all of about 2 days ago...

It is still my theory & this stock sale is about Elon trying to make friends rather than remain as an enemy.

Regards,

[absolutezero]

I suspect this is Musk showing the Democrats that their "Billionaire Tax" Bill is stupid.
They want to charge 'billionaires' (at first and then everyone else as with all taxes) Capital Gains Tax on unrealised gains.

I think he's trying to crash the S&P 500 (or Tesla at least) to show the effect this will have.

CEO sells large amount of stock to pay the hypothetical tax.
Share price crashes.

Media: "Look at the effect on your pensions."

Democrats' Bill ends up in the bin.
Job done.

If that was his intention then it didn't do what he wanted.
TSLA down 2.37% as I type. (Though it was down by around 6% at one point)
S&P up 0.23% as I type.

[scrumpyjack]

Musk does not get a salary at Tesla but he has a lot of other interests and no doubt income (eg Space X). He has I think borrowed quite a lot against the security of his assets including his Tesla shares and has many tens of billions in Tesla stock options. I thought he was selling off all his properties.

It would make sense to realise some of his Tesla shares (I think 10% of his holding is $21 billion) and that amount is small compared to the values of Tesla shares bought and sold on the market. He can then pay off his borrowings, pay some capital gains tax to Uncle Sam, have cash for his other interests (colonizing Mars?!) and get brownie points for being a taxpaying billionaire.

[odysseus2000]

Pepsi expect to take delivery of first Tesla semi this quarter:

https://www.businessinsider.com/tesla-s ... ?r=US&IR=T

Regards,

[TUK020]

Musk does not get a salary at Tesla but he has a lot of other interests and no doubt income (eg Space X). He has I think borrowed quite a lot against the security of his assets including his Tesla shares and has many tens of billions in Tesla stock options. I thought he was selling off all his properties.

It would make sense to realise some of his Tesla shares (I think 10% of his holding is $21 billion) and that amount is small compared to the values of Tesla shares bought and sold on the market. He can then pay off his borrowings, pay some capital gains tax to Uncle Sam, have cash for his other interests (colonizing Mars?!) and get brownie points for being a taxpaying billionaire.

And doing this as a twitter poll gives him a neat excuse to unload a pile of stock in a way that won't crash investor confidence.....

[Adamski]

One other possibility is there's some bad news on the horizon and/or privately thinks the company's is hyped, so started to cash in and more sales to follow. I mean, what other mega cap stock has a normalised pe ratio of 398, source ycharts.com

[scrumpyjack]

One other possibility is there's some bad news on the horizon and/or privately thinks the company's is hyped, so started to cash in and more sales to follow. I mean, what other mega cap stock has a normalised pe ratio of 398, source ycharts.com

Possibly but I don't think Musk is particularly motivated by money, as long as there is enough to do what he wants.
Terraforming Mars and colonising it will be expensive though!

[BobbyD]

* ID only, VW sold 22 fully electric models in China last year.
**https://autonews.gasgoo.com/china_news/70019039.html
*** https://www.reuters.com/business/autos- ... 021-10-12/
****https://electrek.co/2021/11/08/tesla-maintains-extremely-strong-electric-vehicle-output-china/

Despite this high level of export from China, originally described as being for Chinese domestic market only, wait times for 3 and X remain unchanged.

[BobbyD]

* ID only, VW sold 22 fully electric models in China last year.
**https://autonews.gasgoo.com/china_news/70019039.html
*** https://www.reuters.com/business/autos- ... 021-10-12/
****https://electrek.co/2021/11/08/tesla-maintains-extremely-strong-electric-vehicle-output-china/

Despite this high level of export from China, originally described as being for Chinese domestic market only, wait times for 3 and Y remain unchanged.

Edit 3 and Y not 3 and X