Musk Tax 💰

Musk Tax

Elon Musk is a wild man for sure. He names his kids wild things, creates wild projects and companies, and most importantly he tweets wild things, criticizing governments and giving plugs to cryptocurrencies. Recently, he tweeted that he would sell 10 percent of his stake in Tesla, his EV company, to help with the billionaire tax. He posted a poll on Twitter, and “Yes” was the winner, making him go through with the decision. It caused a lot of buzz regarding Tesla’s share price, which sat at 1,000 dollars, but things have changed since.

When announced, the tax bill amounted to 2.7 billion dollars, which is crazy until you look at Musk’s net worth, which lies around 300 billion. Ever since the tweet, Tesla’s share price has taken a hit in what has been a great few weeks for the EV sector, reducing the tax bill by 380 billion dollars from its peak, and the money is continuing to decrease. In the last few days, Musk is continuing to exercise more and more options, and this is reducing his tax bill, but also hurting Tesla’s tax deductions. A stat acquired by the Wall Street Journal found that for every 1 million dollars Musk exercises in options, he saves 370,000 dollars in tax while Tesla loses 210,000 in deductions. This puts the CEO in a unique position, and we are yet to see if this will have a toll on Tesla’s share price, but Tesla hasn’t commented yet, which signals that they are fine with letting Musk do whatever he wants to. What do you think about Musk’s decisions?

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
The New Chip 💻

AMD has unveiled an AI-focused graphics processor, aiming to challenge Nvidia’s dominance.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.