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The Tesla share fell sharply on Tuesday after questions about whether Musk will now sell ten percent of the shares in the company.
The stock ended the day with a decline of 11.99 percent. The stock market fall is the largest for the Tesla share so far this year, according to CNBC. Shareholder value of about 200 billion dollars, equivalent to about 1700 billion kroner was shaved off.
Tuesday’s fall is in addition to the stock falling five percent on Monday.
It attracted attention this weekend when CEO and founder Elon Musk let Twitter followers decide whether he should sell ten percent of the shares in the company or not.
When the deadline for voting expired, the result was clear: Out of 3.5 million votes, 57.9 percent of them said yes to the sale. This means that Musk can sell shares worth NOK 180 billion.
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It is not clear whether Musk has started selling shares or not.
Musk explained the reconciliation with the ongoing debate that wealthy people in the United States refrain from selling shares to avoid paying taxes. Musk himself wrote on Twitter that he does not take out a salary or receive a bonus and that his only method of paying taxes is precisely by selling shares.
Musk’s fortune shrank by $ 15 billion
Tesla shares have risen sharply this autumn, especially on the October news that car rental giant Hertz will buy 100,000 cars from the company. The news pushed the electric car manufacturer past the magic limit of 1000 billion dollars in market value – and sent top manager Musk’s fortune further up.
The Tesla founder is no longer just the richest man in the world, but also the first to pass 300 billion in personal fortune. Musk has had a fortune growth of over $ 100 billion so far this year.
Today’s fall in prices, however, has shaved off some of Musk’s fortune. According to Bloomberg, the Tesla founder’s fortune has shrunk by $ 15.1 billion during the day. This corresponds to around NOK 128 billion.
Wall Street turned down
Wall Street first opened mixed on Tuesday, with industrial giant General Electric among the companies pulling up. But after a short time, the indices turned down and it ended with a broad decline:
- The S&P 500 fell 0.35 percent
- The Dow Jones fell 0.31 percent
- Nasdaq fell 0.6 percent
General Electric rose almost three percent after the news that the company will split in wood.
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This will be General Electrics’ three new companies:
- GE Aviation – GE’s current aviation division, is scheduled to be a separate listed company from early 2023.
- GE Healthcare – GE’s current health division, is scheduled to be a separate listed company from early 2023. GE will retain an ownership share of 19.9 percent.
- GE Renewable Energy and Power – which will combine today’s energy and renewable divisions and digital investments, is planned to be a separate listed company from early 2024.
The company states that the time leading up to the split will be used, among other things, for operational improvements in sustainable operations, as well as to reduce the company’s debt.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
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