Elon Musk took over 9% of the shares of Twitter, a package worth 2.89 billion dollars. As a result of this investment, Twitter shares rose by more than 25%.
As a result, the general manager of the American electric car manufacturer Tesla has become the largest external shareholder of Twitter, according to CNBC. However, Musk recently announced plans to set up a new social media platform.
Thus, Musk owns 73,486,938 shares of Twitter, which is a 9.2% passive package of the company, according to a 13G file of the Securities and Exchange Commission, published on Monday. The stake is worth $ 2.89 billion, based on the closing price of Twitter on Friday.
Musk is a polite Twitter user with over 80 million followers. He was very critical of the social network and its policies. He said Twitter was undermining democracy by violating the principles of free speech.
Elon Musk’s original announcement on Twitter: what happens to Tesla shares
Elon Musk said on Twitter that he would let the users of the platform decide whether to sell 10% of the 170.5 million shares he owns in Tesla, and 58% of the more than 3.5 million voters said ” Yes”. A shocking gesture, as the tycoon used to tell us.
Musk, the company’s founder and CEO, posted the poll, which said: “There’s been a lot of lately made unrealized gains as a way to avoid taxes, so I’m proposing to sell 10% of my Tesla shares. Do you support that? ”
Musk does not receive any salary from Tesla. Its 170.5 million shares of Tesla were worth $ 208.3 billion at the end of trading. At $ 1,222.09 per share, 10% of them would be valued at $ 20.8 billion. With a 20% long-term capital gains tax rate for someone in Musk’s income category, a sales tax bill would be close to $ 4.2 billion.