Tesla shares have fallen by about 4.6% after Twitter customers voted in favour of boss Elon Musk promoting 10% of his stake within the carmaker as a way to pay tax.

Mr Musk polled his Twitter followers on whether or not he ought to promote the shares, and 58% of the three.5 million accounts that voted mentioned he ought to.

It may see him eliminate almost $21bn (£16bn) of inventory.

Mr Musk held the ballot over the weekend in response to a “billionaires tax” proposed by US Democrats.

Mr Musk – who is among the world’s richest individuals – pledged that he would abide by the outcomes of the ballot, “whichever manner it goes”.

The Democrats had proposed plans to focus on billionaires by taxing their belongings, equivalent to shares.

Billionaires are sometimes compensated in shares, which suggests their wealth rises or falls relying on the inventory value. However they solely pay tax on the positive aspects as soon as the shares are offered.

Mr Musk has numerous inventory choices that are because of expire subsequent yr. With a view to train them, Mr Musk must pay a big tax invoice.

As of 30 June, Mr Musk’s shareholding in Tesla got here to about 170.5 million shares and promoting 10% would quantity to shut to $21bn primarily based on Friday’s closing costs.

The chief govt, who presently owns a 23% stake in Tesla, has but to remark publicly on the Twitter ballot outcome.

Mr Musk mentioned on Twitter he takes no wage or bonuses from any of his corporations, which means he has no earnings on which to pay revenue tax.

“Elon Musk would not love to do issues in a traditional manner and so holding a ballot on Twitter about whether or not he ought to promote 10% of his stake in Tesla might sound loopy, however one may say it’s regular behaviour for him,” mentioned Russ Mould, director at AJ Bell Funding.

Mr Mould mentioned the scenario was an “open invitation for sellers to “place a wager that the shares will fall” which might generate a revenue for them if the inventory declined in value.

By Lucy Hooker, BBC enterprise reporter

With this newest Twitter stunt Mr Musk seems to be taking intention at a Democrat plan to ratchet up taxes on America’s wealthiest.

The plan, floated earlier this yr would change the way in which People are taxed, however it solely utilized to round 700 people, the richest of America’s richest, together with Mr Musk.

Sometimes the very rich hold their cash within the type of belongings equivalent to shares in their very own corporations, and solely pay tax in the event that they promote these shares. They will borrow cash utilizing these belongings as collateral, avoiding the degrees of tax most peculiar individuals pay.

The plan proposed levying tax primarily based on how a lot these belongings had elevated in worth, even when they hadn’t been offered, often known as “unrealised positive aspects”.

But it surely has been put aside for now after some Democratic senators dissented.