Tesla Shares Dip by 9% as Massive Sell-off Continues

The shares of electric vehicle manufacturer Tesla are trading in the red zone for the second-consecutive day after the CEO suggested over the weekend that he is open to selling 10% of his stake in the company.

TSLA Down by More Than 9.5% Today

Tesla stock is down by more than 9% so far today, continuing the trend from yesterday. TSLA dipped by more than 5% yesterday after the company’s CEO Elon Musk said he is open to selling 10% of his stake in the company.

Musk ran a Twitter poll asking his followers what they think about the idea of selling 10% of his stake in the electric vehicle manufacturing company. A large percentage of his followers support the idea of selling 10% of his stake in Tesla and diversifying into other fields such as cryptocurrencies.

The recent decline is on track to be the largest of the year for TSLA and comes after losing more than 5% of its value yesterday. At press time, TSLA is trading at $1,049.65 per share. Despite the recent decline, TSLA is still up by 48.75% since the start of the year, outperforming some vehicle manufacturers during that period. In the past 52 weeks, TSLA’s value has gone up by more than 148%.

TSLA Could Dip Lower

Tesla CEO Elon Musk is yet to come out to address the result of his Twitter pool, hence, keeping investors in suspense. The longer the suspense, the more it could affect TSLA’s performance in the market.

Some current and former board members, including Elon Musk’s brother Kimbal Musk, chairwoman Robyn Denholm, Antonio Gracias, and Ira Ehrenpreis, have all said they could sell hundreds of millions of dollars worth of their stocks after TSLA’s market cap hit $1 trillion two weeks ago.

Musk could be forced to pay as much as $15 billion in taxes if he exercises an upcoming CEO package bonus. As such, he would need to sell some of his stocks to raise the money for the taxes.