According to reports, recently, the stock price of pure electric vehicle manufacturers in the United States has been falling. Announcing a $15 billion share repurchase program to rescue falling stock prices.
Call for share buybacks
A few days ago, Koguan sent a tweet to Martin Viecha, Tesla’s senior director of investor relations. Koguan said it should immediately announce a $5 billion share buyback this year and another $10 billion next year.
Koguan also said that Tesla should use its own free cash flow to complete the share repurchase, a plan that will not affect Tesla’s current $18 billion in cash reserves.
In a follow-up tweet, Koguan went on to say that in the first quarter of this year, Tesla’s free cash flow was as high as $2.2 billion, free cash flow for the whole of this year could be $8 billion, and it could be as high as $17 billion for the whole of next year, of which these The numbers have already stripped out the capital expenditure items required by the company.
Koguan said that Tesla’s plan to buy back “undervalued stocks” does not conflict with other investment plans and can be carried out simultaneously. For example, the company can continue to invest in self-driving cars, “Optimus Prime” robots, and build new electric car factories.
Tesla officials did not comment on Koguan’s remarks. On Wednesday, local time, the U.S. capital market sold off sharply, and Tesla’s stock price plummeted 6% that day, continuing the previous decline. Tesla shares fell slightly on Thursday. It is reported that compared with this year’s New Year’s Day, Tesla’s stock price has fallen by more than 30%.
Share buybacks hit a record
The so-called “share repurchase” is a listed company’s purchase of its own shares on the open market. This is more common in the U.S. capital market and is a way for companies to use cash to reward shareholders (repurchases result in fewer shares outstanding and higher share prices).
According to statistics, in 2021, the total amount of stock repurchases in the U.S. capital market will hit a record high of $850 billion. Among them, Apple has repurchased more shares than any other company, behind Apple is Google parent company Alphabet and Facebook parent company Meta. Just last month, Alphabet announced another buyback program totaling as much as $70 billion.
According to US media reports, Koguan has made a lot of money in Tesla stock. He kept buying Tesla stock in the early days of the global pandemic, and a report last October said Koguan had made billions in profits in Tesla stock .
Koguan was so bullish on Tesla’s prospects that he even sold his holdings in all of his other tech companies, betting heavily on Tesla. Companies he has cleared include Baidu, Nvidia, China Mobile and NIO. Koguan told the press that he is a huge fan of Musk, the head of Tesla. “I would say that Musk is the only person on this earth that I respect.”
Musk wants to lower the Twitter acquisition price
Musk, who has become the world’s richest man thanks to his Tesla stake, is now taking aim at the social media company Twitter. However, on Tuesday, Musk announced that he had put on hold the acquisition of Twitter until he figured out how many fake and bot accounts were on the platform.
Analysts at Jeffrey Securities said Musk is looking to lower his offer to buy Twitter, which had previously totaled $44 billion, given the recent rout in the U.S. stock market.
Two Jeffrey Securities analysts said some of Musk’s recent remarks suggested he was in talks to seek a lower bid. He actually used the investigation of fake Twitter accounts as an excuse to hope that the actual purchase price would be lower than the original $54.2 per share.
You know, the Nasdaq Composite Index has fallen by a quarter this year, and Musk now realizes that his offer to Twitter is too high. Tesla officials have yet to comment on the analysts’ comments.
Take a look at twitter
Dan Ives, a well-known analyst at Wedbush Securities in the United States, said that Musk’s private acquisition of Twitter has brought huge uncertainty to Tesla’s stock price .
Efors, who has claimed to have followed Musk for decades, believes that Musk has not been in good shape in recent weeks and is a bit wrong about Twitter. Ives said that Musk’s acquisition of Twitter was unreasonable this time, which also had a negative impact on Tesla’s stock price.