FT News Briefing Elon Musk’s Twitter followers say sell
Nov 9, 2021
Elon Musk’s Twitter poll prompts a surprising decision to consider selling 10% of his Tesla shares, causing a stir in the markets. This comes as Tesla's stock faces a nearly 5% drop. Meanwhile, the Federal Reserve prepares for changes in leadership with Randal Quarles stepping down, opening doors for potential new appointments. In corporate news, Masayoshi Son announces an ambitious $8.8 billion share buyback to counter investor pressure, raising questions about stock sustainability and strategies.
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Fed Resignation
- Fed Governor Randal Quarles is resigning, creating another opening for Biden to fill.
- This adds to the uncertainty surrounding the Fed's leadership amid calls for Powell's replacement.
Musk's Twitter Stunt
- Elon Musk's Twitter poll about selling Tesla shares is a publicity stunt with multiple motives.
- It allows him to control the narrative around paying taxes and provides cover for selling shares.
Musk's Stock Options
- Musk likely needs cash to pay taxes on upcoming stock options.
- By selling shares now, he preemptively raises funds for a future tax bill.