Tesla shares fall after Twitter users vote for Musk to sell stock

Tesla shares fall after Twitter users vote for Musk to sell stock

Tesla shares

Tesla (NASDAQ:TSLA) Inc is trading down 0.64% at 1222.09

Tesla (NASDAQ:TSLA) 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 (NYSE:TWTR) poll.

Musk, Tesla’s chief executive officer and the world’s richest person, tweeted on Saturday that he would offload 10% of his stock if users of the social media network approved the proposal.

The electric-vehicle maker’s shares were down 6.2% at $1,146.43. Shares listed in Frankfurt were down about 7% at 989.10 euros.

The Twitter poll asking Musk’s followers if he should sell stock garnered more than 3.5 million votes, and 57.9% of the people voted “Yes”.

Musk had previously said he would have to exercise a large number of stock options in the next three months, which would create a big tax bill. Selling some of his stock could free up funds to pay the taxes.

“I was prepared to accept either outcome,” Musk said, after the voting ended. Market participants expected speculators would try to front-run his selling.

As of June 30, Musk’s shareholding in Tesla came to about 170.5 million shares and selling 10% would amount to close to $21 billion based on Friday’s close, according to Reuters calculations.

Including stock options, Musk owns a 23% stake in Tesla, the world’s most valuable car company.

On technical fronts Tesla (NASDAQ:TSLA) Inc RSI stood at 89.05 and currently stock is trading above all MA. So, BUY position can be taken with following target and stoploss:

TRADE SIGNAL – : Tesla (NASDAQ:TSLA) Inc – BUY: 1220.69, TARGET: 1230.78, STOP LOSS : 1207.57

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