Musk sold out his house and became the first man in history to have no real estate. It's a strange thing. Mom opened the door to strange, strange arrived at home, what kind of asset is real estate? Don't you have to say it, right? But Musk first sold at least five of his eight homes to buyers who borrowed money from himself, even if he lent money to someone else, and then the last $37.5 million mansion, which sold for thirty million. What is even more confusing is that he has not only sold his house recently, but even sold nearly $20 billion worth of stocks. You don't think these actions are a little impatient, so some people say, give wealth to Mars and space, this is the true love that promotes human progress. Others say that the economic crisis is coming, the world's richest man knows that cash is king, and you still refuse to say goodbye to the assets in your hands. So what is going on with this series of weird operations?
In fact, since the beginning of this year, we have seen a lot of strange phenomena, such as Amazon's Bezos selling $9.97 billion worth of Amazon stock, the Walton family selling $6.18 billion worth of Walmart stock, and Zuckerberg, who has lost consecutively, selling $4.47 billion worth of Facebook stock, and so on. It's a bit of cash, it's not funny, but it's not, and the biggest reason is because the U.S. finances are tight right now, so it plans to increase the capital gains tax on the rich from the highest 20 percent to 43.4 percent. What is capital gains tax? It is stocks, real estate these assets in the sale of profits ten, the part of making money, to pay taxes, in addition, there are people proposed to further levy billionaire tax, this big killer, the original tax collection is after the sale of assets to operate, and this billionaire fee, regardless of whether the rich people's stock, real estate is sold, to tax the profit part. Foreign media have helped Musk calculate that if the billionaire tax is implemented, it may face paying $50 billion in taxes in the next five years. So the only option left for Musk is to sell and sell as soon as possible before the new tax law is introduced, otherwise the tax payment next year may be double or more than it is now.
So you can see that he quickly launched a vote for netizens whether to sell 10% of Tesla stock to pay taxes. After getting 58% of the support of netizens, he decisively sold 10% of the stock of about 17 million shares. At Tesla's price of $1,130 a share at the time, this would have brought Musk $19.2 billion in revenue, but the sale was not over, and it was forced to collect taxes, so it sold the last house. How does this work? Because California has the highest individual tax rate in the United States, musk would have to pay about $2.5 billion if he paid his 13.3% tax rate. Selling his last mansion in California means Musk can declare that he is no longer a California resident. Immediately after, he himself moved to Texas, which was exempt from taxes, along with Tesla's headquarters. In other words, if the same $19.2 billion in proceeds from selling stocks, he would not have to pay a dime. But in addition, There is actually another reason for Master's house sale, which is because the Federal Reserve releases water indefinitely, resulting in the transaction volume and price of U.S. real estate at a historic high. Especially in California, even Buffett bought the villa that was initially offered for $11 million and bought it for 7.5 million, but why did he have to sell the house at a reduced price like Musk? In fact, the reason is very simple, the United States released water to send money, the people want to buy some assets to depreciate the money, the United States real estate agencies have done statistics, at the end of October, there are 1.25 million houses for sale in the United States down 12% year-on-year. If this rate of sale is followed, houses on the U.S. market will be snapped up within three months. And according to their predictions.
This year, U.S. real estate sales will be 13. The highest value in seven years, in August alone, U.S. real estate transaction prices rose 18.1 percent, breaking the highest increase in 45 years. That is to say, the sale can now be regarded as the apex of the scattering, coupled with the original goal is to escape California, or cash out before the new tax law is introduced, so even if the price is reduced, it is bloody. When Musk just tweeted that he was going to sell all his properties, he said he was doing so to quell criticism of his vast wealth. But now it seems that rich people will live a life, and they have saved money and done marketing. But actually? This is exactly what makes Musk interesting, he seems to always have a two-sided attribute, on the one hand is a hero who looks forward to the sea of stars and expands the limits of human imagination, but on the other side is an unreserved, naked businessman who shows human calculations and ruthlessness. As for which point you believe, I think it's a good idea to look at time, because only she can make the answer to everything appear on her own.