Tesla CEO Elon Musk is trying to buy Twitter and run multiple companies at the same time.
James Glover II | Reuters
Billionaire Leo Koguan, who claims to be the third-largest individual shareholder in Tesla stocks, has called on carmakers to announce a $ 15 billion stock buyback as the company’s share price continues to plummet.
Inside A tweet Martin Viecha, senior director of Tesla Investor Relations, Koguan, said the company should immediately announce that it plans to buy $ 5 billion Tesla shares this year and $ 10 billion return next year. He added that Tesla should use its free cash flow to fund buybacks and that this would not affect its existing 18 billion cash reserves. Tesla did not immediately respond to a request for comment by CNBC.
Shares of Tesla fell more than 6% on Wednesday amid a sell-off in a broader market. The company’s stock has fallen more than 30% this year.
A stock buyback – when a public company uses cash to buy its own shares in the open market – is a method that firms use to try to repay shareholders’ capital.
Buybacks hit a record high of $ 850 billion in 2021 Over the years, Apple has repurchased more of its own stock than any other public company, followed by Alphabet and then Meta. Alphabet announced another $ 70 billion buyback last month.
Koguan “bet home” on Tesla in the early hours of the coronavirus epidemic, according to an October Forbes report that he has made billions over a long time on electric vehicle manufacturers. Koguan Baidu has reportedly moved to Tesla after selling its shares in other companies such as Nvidia, China Mobile and Neo.
“I consider myself Elon’s fanboy,” Koguan said. “I would say he is the only person I really respect in the world.”
Musk, the world’s richest man in the paper, said on Tuesday that he had put the Twitter deal “on hold” until further notice on how many fake or spam accounts there were on social media networks.
On Tuesday, analysts at Jefferies said that the market seems to be trying to reduce the price of masks due to recent sales.
“Recent comments from Elon Musk suggest he is trying to negotiate a lower offer price,” equity analyst Brent Thiel and equity associate James Henny said in a research note.
“We believe that Mask is using his investigation into% of fake TWTR accounts as an excuse to pay below $ 54.20 / share. In fact, NASDAQ COMP has lost 25% YTD. [year-to-date] And Elon Musk understands that he is paying extra for the assets. “CNBC contacted Tesla to respond to the comments but received no response.
Wadebush analyst and Tesla bull Dan Ives told CNBC on Wednesday that Musk’s plans to buy Twitter had caused a “massive overhang” on Tesla stock.
Ives, who says he has followed the mask for decades, says the mask has had a “black eye” in the last few weeks.
“The way he handled it, I believe it was unreasonable,” Ives said, adding that it “left a little mark on Tesla’s stock.”