- Elon Musk fueled speculation that Tesla could soon announce its first-ever stock buyback.
- Responding to a tweet from a top Tesla investor who said only a buyback or a doubling in profit could break the stock’s slump, Musk said “Noted.”
- Leo KoGuan, who says he is the third largest individual Tesla shareholder, has previously called for a buyback of $5 billion this year and $10 billion next year.
Elon Musk added further fuel to speculation that Tesla could buyback stock for the first time.
On October 3, Leo KoGuan — who claims to be the EV maker’s third-largest individual shareholder — tweeted, “Tesla is having PE ratio compression that can be solved only by buyback and/or by 2x earnings increase.”
On Thursday, Musk replied “Noted.”
KoGuan previously called for a repurchase when shares were falling in May. At the time, he said Tesla should announce plans for a $5 billion buyback this year and a $10 billion buyback next year.
On Friday, Tesla stock was down 6% at $207.84 and has tumbled more than 40% this year amid aggressive interest rate increases from the Federal Reserve, fears of a recession, and Musk’s Twitter takeover bid, which would involve his Tesla shares.
He is currently facing headwinds from his pursuit of Twitter, which said in a regulatory filing Thursday that Musk is being investigated by federal authorities for actions related to his bid.
A Delaware judge has also given him until October 28 to finalize the deal or go to trial with the social media company and face a potential breakup fee. Reports have also surfaced in recent days that Musk is at risk of losing his financing for the deal.
Meanwhile, Tesla is set to report third-quarter earnings on October 19.