Elon Musk DID pay taxes this year - Once again, it's all relative

[Lucky Luciano]

40. To minimize market impact only. The government can then slowly unwind the position...

…and assume all risk. Tricky part there is that the government would be best advised to sell ES futures versus the stock they receive to minimize market risk of those shares and as they unwind, cover the ES short. Those ES future sales could be huge and that could be a legitimate market impact. It would probably make for an amazing mean reversion trading strategy, to buy the futures that the government sells. Hmmm ……

Remember that the voting rights would be stripped.

This also removes the potential absolute hell of having to pay cash taxes followed by gigantic losses on shares that can happen on a market crash. Imagine one year having a billion in cash taxes to pay and relying on the shares to pay those taxes…then the shares crash. It is advantageous actually to be able to pay in shares. Sure…make it an option for the tax-ee. I bet they opt to pay using shares in a wealth tax scenario if voting rights are stripped.

Actually, yeah…I’m starting to like the idea more and more. If a big owner of the shares opts to pay cash and not in stock, that would be a huge vote of confidence in the stock and the macroeconomic picture in general. One could probably make a trading strategy based on that sort of insider handling of their stock.