By
Svetlana Soroka
April 18th, 2024
Tesla stock has gained approximately 190%, 73%, 71%, and 54% in the past year, YTD, three months and one month respectively.
Tesla Inc (NASDAQ: TSLA) stock traded around $1,170, down approximately 4.24%, during Monday’s premarket. Although TSLA stock has enjoyed a major bull market for the past few years, trouble seems to be boiling up following a cold relationship with the Biden administration. Notably, Tesla CEO Elon Musk gave Twitter users over the weekend a chance to decide whether he should sell 10% of his Tesla stock to pay for unrealized gains.
Surprisingly, 58% of the final casted votes supported the idea, whereas 42% of the 3,519, 252 voted did not support the notion. Musk had indicated that he would abide by the results of the poll, whichever way it went. Indicating that he does not take any cash salary from his companies.
“Note, I do not take a cash salary or bonus from anywhere. I only have stock, thus the only way for me to pay taxes personally is to sell stock,” Musk tweeted.
The poll has, ostensibly, attributed huge attention from market pundits seeking to decipher according to their perceptions. According to chief economist and global strategist at Europac.com, Peter Schiff, Musk would better invest the money wisely to benefit the society.
“From a diversification and valuation perspective, the sale makes a lot of sense. The fact that you’ll have to pay taxes on the proceeds however is not a net benefit to society. The public would be better served by you wisely investing that money rather than government wasting it,” Schiff said.
Notably, the Twitter poll proposed by Elon Musk decided the fate of over $20 billion of Tesla stock.
Tesla (TSLA) Stock and the Future Market Outlook
According to market analytics provided by MarketWatch, Tesla stock has gained approximately 190%, 73%, 71%, and 54% in the past year, YTD, three months and one month respectively. Tesla stock has ranged between $396.03 and $1,243.49 in the past 52 weeks.
The company has a market valuation of approximately $1.23 trillion with 1 billion in outstanding shares.
Tesla and its CEO has had a cold relationship with the Biden administration spanning different issues. Among them, the Biden administration did not invite Tesla during the August EV conference held in the White House.
On the other hand, the Biden administration has put in place a policy to tax the ultra-wealthy billionaires’ unrealized gains, where Musk categorically falls.
All said, Tesla is a public and multinational tech and EV company, thereby making its stock market heavily affected by global fundamentals not only those in the United States. Hereby putting Tesla stock market and its future growth prospects on the global perspective and fundamentals.