Tesla is on the verge of losing it all and the reason should be attributed to Elon Musk. The decreasing Tesla shares, controversies around the company and its so-called next-gen EVs, seemingly have disturbed investors. They are unsatisfied with the EV maker.
Tesla’s CEO Musk probably has also realized that the company cannot be saved and thus, is getting rid of Tesla.
Musk donates Tesla shares to a charity
Musk, the world’s richest person recently donated Tesla shares worth $5.7 billion to a charity in November. This has been revealed by securities filing with the US Securities and Exchange Commission. It is believed to be one of the biggest in history if we calculate the average prices of electric carmaker’s stock on the days, he sold the stock.
Musk has gotten rid of Tesla shares worth $16.4 billion or 10% of his stake in the company. The decision came after a debate on billionaires evading their tax duty over unrealized gains from earnings in stocks.
Notably, Democrat representatives in the United States, Bernie Sanders, and Elizabeth Warren, have been accusing these billionaires such as Musk and Bezos of evading their responsibility.
However, Bob Lord, an associate fellow at the Institute for Policy Studies reported to the media, “There is tax benefit for Musk potentially gifting Tesla stock as the shares donated to charity are not subject to capital gains tax. His tax benefit would be huge. He’d save between 40% and 50% of the $5.7 billion in tax, depending on whether he could take the deduction against his California income and he’d avoid the gains tax he would have to pay if he sold the stock.”
Tesla is falling apart
Tesla’s progress is declining gradually. Witnessing all the hype created around Musk’s so-called ‘genius’ plans, stock investors were assuming that Musk will announce a new project driving Tesla’s future growth.
But guess what, there are no new projects in the pipeline.
Read more: The bubble of Elon Musk has finally burst
Elon Musk has announced a humanoid robot called Optimus. He highlighted that the humanoid robot would be deployed in Tesla facilities in an apparent attempt to solve the labour shortage problem in the US.
Well, a humanoid robot and all is fine. But people were expecting the Cybertruck or an affordable EV to be released by Tesla this year, but it isn’t happening.
The wait for the EV product is becoming endless and investor sentiment is gradually fizzling out. And this is taking a toll on Tesla shares.
Read more: Tesla is falling apart and Elon Musk’s failing genius streak is the reason
Over the recent past, Musk has faced several setbacks. His only original venture SpaceX is, for example, in the midst of a major financial crisis. Recently, it was reported that in a leaked email to the company employees, Musk warned that SpaceX will need to achieve an impractical Starship launch rate of one flight every fourteen days to avert a financial disaster.
Musk however has a great PR, and this is his only big strength. However, he has realized that Tesla is on the verge of its end. And thus, he is doing all in his might to prevent any further harm.