Tesla CEO Elon Musk is buying Twitter and trying to manage multiple businesses at the same time.
James Glover II | Reuters
Billionaire Leo Coguan Tesla Equity is asking automakers to announce a $ 15 billion share buyback as the company’s share price continues to fall.
of Tweet Coguan told Tesla’s senior director of investor relations, Martin Viecha, that he needs to immediately announce plans to buy back $ 5 billion in Tesla shares this year and $ 10 billion next year. He added that Tesla should use its free cash flow to fund repurchases and not affect its existing $ 18 billion cash reserves. Tesla did not immediately respond to CNBC’s request for comment.
Tesla’s stock fell more than 6% on Wednesday amid widespread market sellouts. The company’s inventory has fallen by more than 30% this year.
Share repurchase (when a public company uses cash to buy back its shares in the public market) is the method a company uses to try to return capital to its shareholders.
Musk, the world’s wealthiest person on paper, said Tuesday that he would “hold” Twitter transactions until he got more information about the number of fake and spam accounts on social media networks.
Jeffreys analysts said Tuesday that Musk appears to be trying to cut prices due to recent market sellouts.
“Recent comments from Elon Musk suggest that he is trying to negotiate a lower offer price,” stock analyst Brent Chill and stock associate James Heaney said in a research note. ..
“Musk believes it is using the survey on the percentage of fake TWTR accounts as an excuse to pay less than $ 54.20 per share. Nasdaq Composite Index YTD reduced by 25% [year-to-date] And Elon Musk recognizes that he may be overpaying for his assets. CNBC contacted Tesla to respond to the comment, but did not receive a response.
Wedbush analysts and Tesla’s Bull Dan Ives told CNBC Wednesday that Musk’s plans to buy Twitter are a “massive overhang” of Tesla’s stock.
Ives, who says he has been following the mask for decades, said he had “black eyes” in the last few weeks.
“I don’t think he was conscientious about how he handled this,” Ives said, adding that Tesla’s stock was “a little dirty.”
