Elon Musk just asked his Twitter followers whether he should sell 10% of Tesla stock due to the planned unrealized capital gains taxation plan by members of the US government. "Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock," Musk tweeted and he also said he will abide by the results of the poll as per the planned 25 billion sale.
👏👏👏 Big shout out to our growing list of Patreons. For those of you want (and can) support our channel, here is how you can help: https://www.patreon.com/user?u=13016082
Here is the link for the 10% coupon code for TipRanks:
https://bit.ly/3BJA7KJ
You can now book a live 1X1 call with me via Clarity here: https://clarity.fm/tomnashv2
I have a long position in TSLA stock.
DISCLAIMER: All of Tom's trades, strategies, and news coverage are based on his own opinions alone and are only done for entertainment purposes. If you are watching To'ms videos, please Don't take any of this content as guidance for buying or selling any type of investment or security. Tom Nash is not a financial advisor and anything said on this YouTube channel should not be seen as financial advice. Tom is merely sharing his own personal opinion. Your own results in the stock market or with any type of investment may not be typical and may vary from person to person. Please keep in mind that there are a lot of risks associated with investing in the stock market so do your own research and due diligence before making any investment decisions.
👏👏👏 Big shout out to our growing list of Patreons. For those of you want (and can) support our channel, here is how you can help: https://www.patreon.com/user?u=13016082
Here is the link for the 10% coupon code for TipRanks:
https://bit.ly/3BJA7KJ
You can now book a live 1X1 call with me via Clarity here: https://clarity.fm/tomnashv2
I have a long position in TSLA stock.
DISCLAIMER: All of Tom's trades, strategies, and news coverage are based on his own opinions alone and are only done for entertainment purposes. If you are watching To'ms videos, please Don't take any of this content as guidance for buying or selling any type of investment or security. Tom Nash is not a financial advisor and anything said on this YouTube channel should not be seen as financial advice. Tom is merely sharing his own personal opinion. Your own results in the stock market or with any type of investment may not be typical and may vary from person to person. Please keep in mind that there are a lot of risks associated with investing in the stock market so do your own research and due diligence before making any investment decisions.
Hey this is tom, and in case you saw elon musk, go crazy on twitter again and didn't understand what the hell is going on. I'm here to explain you in three minutes: what's this whole fuss about now, elon musk, just tweeted that he's making a poll basically to decide whether to sell 10 of his tesla holdings, which is about you know, give or take 25 billion dollars now to be fair, It's a lot of money, but elon musk has never really sold that much stock. I mean he pretty much kept it all smart guy. So the reason he made this poll is actually very interesting and i'm gon na explain it in a second.
But the thing is he's saying that he's dead serious, it's not a meme, it's not a joke. He actually specifically said i will abide by the results of this poll and then he went on to add and he gets no salary from tesla and he pretty much has no money like he's rich on paper, but he's not really rich with cash. I mean he's. Never really sold so what the hell is going on, and why did he make this poll so in his tweet he mentioned taxing unrealized capital gains and if this sounds like chinese to you, i'm here to explain the whole story in 30 seconds.
So the way the tax system works today is basically, if you sell a piece of stock, you pay a capital gains tax, you hold it under a year. You play basically short-term capital gains tax, you hold it over a year, long-term capital gain tax, and this long-term capital gains tax for short-term, for that matter is basically a way for the government to tax you for your profits from the stock market. Quite simple - and this is the way it works pretty much almost in every single country, at least the modern tax system. Recently, the u.s government came out with an initiative, one of many which is basically to tax people, if they're really hella rich based on tax.
That is not derived of execution. Basically, you don't have to sell any stock to trigger this tax. Essentially taxing unrealized capital gains. So in the case of eland, for example, he would be included in this new regulation.
Essentially, he will pay tax for stocks. He holds of tesla, even though he never sold these stocks, basically taxing him and other guys, basically on stuff they've, never really sold, which is kind of unheard of, and a lot of people made a commentary about this, saying that this is for many reasons and i'm Included in this group, i also think it's because i think it's a slippery slope that eventually they're going to start taxing regular people like that. Initially, the government was just saying: well we're just going to do it to hella rich billionaires, but you know in a year or two they're going to go to regular folk. That's how every tax system works it tax.
You know it starts with the super wealthy and then they work down towards the grocery stores and the bus drivers and the school teachers, but that's not the point of this video, so essentially they came out with this idea and clearly this was personally targeted. This administration doesn't like elon, i mean they made a whole eevee conference in the white house. Didn't mention tesla not inviting them not even mentioned tesla and not to mention the latest tax credit fiasco, so this administration doesn't really like elon and everybody understands this is pretty much a personal thing, they're taking a shot at elon and they want to tax him on The tesla profits they want to make him sell and right now what's going on, is really interesting, because i think elon basically found a way to flip a middle finger to the government in a typical illinois style in a savage beast mode. He basically went on twitter and he let everybody know: hey dudes, i'm going to be selling 10 of my stock, but it's not because i think companies trash, i don't think the stock is going to go down. I absolutely have to because they're about to tax my ass, essentially the classical. Well, you don't fire me i'm quitting moment which is kind of cool, but what he did really here is he took away the sting out of this whole scenario. The government basically was about to tax him and realize capital gains. He would sold 10 percent of tesla.
This would send tesla stock spiraling downwards, essentially hurting tesla. When alex harp sells stock, you see what happened volunteer, so the same thing would have happened with tesla, so he basically went on twitter. Let everybody know hey. Miss selling has nothing to do with my belief in the company.
Hence his selling will not affect the share price as much as it would have, and he basically killed it and he got a way to take 25 billion dollars from the company without getting people triggered annoyed and in fact, 56 percent of people so far, and i Believe the number will go up support in him selling the stock, so he got public support. He got pr and he got to take 25 billion dollars not to reduce the tesla overall market cap and flip a finger to the government. Why not brilliant? By the way? Chamath actually tweeted something about it, and i think chamas shouldn't have even spoken about this, because the guy who said that there's better investments and completely sold out of tesla and missed on a hundred percent of the upside, basically betting against elon, in other words, shouldn't be Commenting or commentarying or saying anything about this, i believe he should remain silent and i don't i don't have any interest in hearing anything he has to say, but just at this point no hate towards jamal. In any case, let me know below with the houston this one.
What do you think a huge shout out channel members and the patrons and as always, don't click? Nothing, don't smash? Nothing, don't buy. Nothing, see you tomorrow.
According to one analysis, it would only take about $20b to permanently solve the homelessness problem in the U.S.
Think about that for a second. Even if it's off by a factor of 10, we can think of a number of better things to spend our money on than simply buying/owning more assets and sitting on them waiting for them to appreciate.
Even though I'm anti-Elon, this recent bit of mental instability reveals a greater truth.
I think this is another smoke screen from Elon. He has his reasons for selling, and I doubt the US government would ever be able to get a bill passed to tax unrealised capital gains. It's his business, but the one thing I am sure he is not selling it for is to buy a yacht, big mansion, or fleet of sports cars. More likely to use it to start a new business venture or put it to other good use (environmental or put towards Texas University project).
It would be a funny addition to your videos if you ended them this way from now on. Accidentally knocking over your phone. Not sure how you film, but if it's an expensive camera, maybe it's a bad idea..
Way more than a slippery slope if they come after everyone… any homeowner will be a juicy target. Think, if you own your home outright, the only thing you have to deal with if you don't de-tax it by changing it to private property, is the property tax. If the government passes this and eventually goes after everyone, you will get a 25% tax bill from the FED (not local property) on top of what you already pay. This is basically a complete elimination of property rights and is a massive violation of the constitution… on top of the already minor violation that is todays property taxes, which should be voluntary.
Having to pay for property for life regardless of the made up reason means you can never truly own property.
This is a secondary vector of attack in the long game against private property ownership. They are also working on banning single family home zoning by usurping property management from the individual states.
I just realized an amazing loophole we can insert in the proposed tax scheme. If we get the government to pay up on unrealized loses, we can claim loses then come around and invest these loses and get in return more unrealizes loses, then repeat. This will make us trillionaires just on loses alone!
To all fellow holders: Don’t freak out, look at the charts, it has so much room to go back to the 9EMA. Remember that corrections are important to keep the overall trend up!
In the big picture of world history- big deal. Props to Elon for calling out the negativity and for showing that he is not a money gripping A-hole. I do not agree with all his political stands but he is a good human being… I think he should 100% do it. It will keep the discussion going, if nothing else.
It will hurt the stock holders like me for a minute but knowing Tesla and the future it has the drop will be short. I think it will be a buying time for everyone.
We need to do what's Fair. If the government wants to be involved with unrealised gains. Then they better be involved with on realized losses as well. If I have a stock that goes up 100%. And they want to tax that. Fine. But when I have a stock that drops 90%. Well then I better see a tax credit.
Why am i thinking and seeing the global agenda is to control and reduce individuals wealth as much as possible.
How will populations already under progressive vendetta, it seems, towards individual freedom can further be controlled?
Interesting to see how through the centuries the promotion to increase individual wealth regardless of family values and moral compass and all around good community citizenship.
Thank u Mr Tom
Thanks Tom! I had been struggling to pin this one down. I appreciate your perspective. Regardless of his intentions and trying to get in front of this, do you think him selling would impact the price negatively? I really think people are going to be surprised how Tesla continues to perform.
I don’t agree with taxing unrealized gains. But I also don’t believe millionaires and billionaires not pay little to no taxes. Especially when most people are playing thousands of dollars. Just find a tax system where all pay their fair share..No way should someone making 100k should be paying more in taxes than someone making millions or billions.
If he was half as clever as you all think he is, he'd have a Tesla brand cologne called "Elon's Musk."
You know you'd buy that.
The US government already taxes unrealized capital gains on ordinary people. They call it a property tax. If your property rises in value, you pay more in property tax without having sold anything. The super rich have been playing the tax evasion game long enough.
Elon should sell and pay tax, then buy back TSLA then the TSLA price is jump up like crazy. That would indicate that Elon really believes in what he is doing and the mass will follow. His current twit is amazing for this set up. Do it do it do it!!!!
Tesla's competition is coming – and it's coming strong, despite all the attempts from Tesla fanboys to divert attention. The competition will be strong mainly from Chinese carmakers and can only be stopped by political means, as they did with Huawei. How long it will be possible to stop competition with this smokescreens in front of consumers is another question.
It is NOT 56% of the people who voted YES. I bet 10's of thousands of bots voted, maybe even paid by old school auto manufacturers. Totally fake. And why let anyone vote who isn't even a Tesla share holder. Elon is out of his damn mind to do this. Nothing good can come from it. Total Bullshit move.
He is damn fool if he lets the left decide for him to sell 10%. Must have been on the drugs this weekend. Stupid decision to let bots and strangers decide for him to sell.
Lol Tesla stock is the definition on a gamble and whatever the guy at the end said, I’m sure he doesn’t regret not staying in what he doesn’t understand lol
The way the current US administration is behaving regards the tax thing is another nail in their coffin and add in hurting them in the next election.
Wonder why Elon does this? Publicity stunt? So far it's not gaining any traction.
Let's see how much the stock will drop from selling 10%?
In Ireland if you buy an ETF every 8 years you tax on the unrealised capital gains however you are not allowed to write off any losses. A complete scam
Elon didn't get to where he is without brilliance. He is masterful player especially when his hand is being forced and when his back is against the wall.
Tom, I'd like to point out that most "regular" people pay this same type of tax in one of two ways. First is property tax, regular people, the 90% that own only 11% of all stocks (50% own no stocks) pay property tax directly or indirectly. It's literally a cost to live in the US. The second way regular people pay is on their 401k funds. They are on average paying 0.4% "management fees". Even the lowest fee Vanguard ETF is 0.17%, the bad mutual funds and 401k's they are in the 1.5 to 2% range! for "fees". So let's just call it a "management fee" just like all the big funds charge regular Americans to participate in retirement. If you think it's BS, then explain to me why the 401k management fees are justified.
Unless it doesnt drop to almost exactly 1000 dollars im fine, and after the first reaction to his tweet we are at exactly 1000 euros, so im fine currently this will just be a short term event for the stock