Tesla shares fell 12% on Friday after Elon Musk said he would sell more of his stake in the company. Musk said he would sell up to 10% of his shares if Twitter users voted in favor of it.
Musk’s tweet came after he polled Twitter users on whether he should sell 10% of his Tesla shares. The poll received over 3.5 million votes, with 58% of respondents voting in favor of the sale.
Musk’s decision to sell more of his Tesla shares comes as the company faces a number of challenges. Tesla’s Shanghai factory has been shut down for several weeks due to COVID-19 restrictions, and the company is facing rising costs for raw materials.
The sell-off in Tesla shares also comes as the broader stock market is under pressure. The S&P 500 index is down more than 10% year-to-date, and investors are worried about a potential recession.
Musk’s decision to sell more of his Tesla shares could further pressure the company’s stock price. However, it could also help to boost liquidity in the stock and make it more accessible to investors.
It remains to be seen how much of his Tesla stake Musk will ultimately sell. However, his decision to sell more shares is a sign that he is willing to take some chips off the table. This could be a positive signal for investors, as it shows that Musk is confident in the long-term prospects of Tesla.
In the meantime, Tesla investors will be watching closely to see how the company performs in the coming months. If Tesla can overcome its current challenges and continue to grow its business, the sell-off in its stock price could be a buying opportunity.
