The biggest electronic vehicle maker has considerable exposure to bitcoin and many wonder whether there will be any effects on the crypto in case Musk decides to sell TSLA. After several days of voting, most of the 3.5 million poll participants have decided that Elon Musk should sell around $25 billion of his Tesla stock.
Musk already asserted that he will abide by the results of this poll, raising the questions about how it would affect the shares prices and also bitcoin since the firm holds Bitcoin on its balance sheet.
TSLA Stock To See Increased Volatility?
The Tesla CEO shocked the entire world over the weekend when he initiated a Twitter poll. In the poll, he asked whether he should sell about 10% of his TSLA shares. He also vowed to do whatever his millions of followers decided.
Now, the results are in. It appears like he would have to dispose of some of his shares. Over 3.5 million people voted and 57.9% of them have answered this poll with “yes.”
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?
— Elon Musk (@elonmusk) November 6, 2021
Elon Musk said that his idea came from the recent debate about investors refusing to realize gains to avoid paying taxes. CNBC alleged that Tesla’s CEO would face a tax bill of at least $15 billion in the coming few months on stock options. That might be the primary reason for his possible sale.
Irrespective of his real reasoning, these implications of such a move may be considered for the firm. After all, most people might follow in selling in case they think that the person that is running the company has lost faith and is now cashing out.
Buy Crypto NowFor now, however, this has not been the case. TSLA stocks remained stable losing only 0.64% of value. Musk has not sold or even confirmed that he will sell his shares since the poll ended.
But, it would be quite compelling to follow on what will happen with TSLA in the coming days and whether Musk will hold up to his promise.
What Happens To Bitcoin?
As reported last week, the Bitcoin proponents like Max Keiser and Michael Saylor elaborated on the benefits in case Tesla’s CEO decided to acquire bitcoin with the proceeds he gets from the Tesla share sale. Although that appears to be quite far-fetched for now, the crypto might still be affected by Musk’s decision.
So far, we have seen how Elon Musk’s words and actions in regards to bitcoin have affected the asset’s market prices. Moreover, Tesla acquired bitcoin at the beginning of this year, and despite selling around 10% of its bitcoins, the firm still holds billions of bitcoin worth on its balance sheet.
But since then, BTC has matured and proven that it can rise above the FUD that is prompted by single individuals, even when they are as influential as Elon Musk. Nonetheless, his eventual sale of $25 billion worth of his TSLA shares might have a near-term effect on the Bitcoin market.
