In the morning of May 20, Beijing time, it is reported that recently, the share price of American pure tram manufacturers has fallen endlessly. Leo KoGuan, an American billionaire who claims to be Tesla's third largest individual shareholder, recently called on Tesla to announce a stock repurchase plan with a total amount of $15 billion and quickly save the falling share price.
Call for share repurchase
Recently, KoGuan tweeted to Martin viecha, Tesla's senior director of investor relations. KoGuan said it should immediately announce the repurchase of $5 billion of shares this year and continue to repurchase $10 billion of shares next year.
KoGuan also said that Tesla should use its free cash flow to complete stock repurchase, and this plan will not affect Tesla's current $18 billion cash reserves.
In a follow-up tweet, KoGuan went on to say that Tesla's free cash flow in the first quarter of this year was as high as $2.2 billion, the free cash flow in the whole year of this year may be $8 billion, and the free cash flow in the whole year of next year may be as high as $17 billion. These figures have excluded the capital expenditure items required by the company.
KoGuan said that Tesla's plan to buy back "undervalued shares" does not conflict with other investment plans and can be carried out simultaneously. For example, the company can continue to invest in autonomous vehicle and Optimus Prime robots and build new electric vehicle factories.
Tesla officials did not comment on KoGuan's remarks.
On Wednesday, local time, the U.S. capital market sold sharply, and Tesla's share price plunged 6% that day, continuing its previous decline. Tesla shares fell slightly on Thursday. It is reported that compared with new year's day this year, Tesla's share price has fallen by more than 30%.
Record share repurchases
The so-called "stock repurchase" is that listed companies buy their own shares on the open market. This is common in the U.S. capital market and is also a way for companies to use cash to repay shareholders (repurchase leads to a decrease in circulating shares and a rise in share prices).
According to statistics, in 2021, the total amount of stock repurchase in the U.S. capital market reached a historical record, as high as 850 billion US dollars. Among them, Apple The amount of shares repurchased exceeded that of any other company, followed by Google's parent company alpha and Facebook's parent company meta. Just last month, alphabet announced another repurchase plan, with a total amount of $70 billion.
According to US media reports, KoGuan has made a lot of money in Tesla stock. In the early days of the global COVID-19, he kept buying Tesla shares. A report in October last year said that KoGuan had made billions of dollars in profits in Tesla shares.
KoGuan is so optimistic about Tesla's prospects that he even emptied his holdings in all other technology companies and gambled heavily on Tesla. His clearance companies include Baidu, NVIDIA, China Mobile and Weilai automobile.
"The only person who wants me to respect Musk on earth is the master of the press," Musk said
Musk wants to lower the purchase price of Twitter
Relying on Tesla shares, musk has become the world's richest man. He is currently coveting social media enterprise twitter. However, on Tuesday, musk announced that he had suspended the acquisition of twitter until he found out how many false accounts and robot accounts there are on the twitter platform.
Analysts at Jeffrey Securities said musk was seeking to reduce its offer for twitter (previously a total of $44 billion) in view of the recent sharp decline in the U.S. stock market.
Two analysts at Jeffrey Securities said Musk's recent remarks showed that he was negotiating for a lower bid. He actually used the investigation of twitter false accounts as an excuse to hope that the actual purchase price was lower than the earliest $54.2 per share. You know, the Nasdaq composite index has fallen by a quarter this year. Musk now realizes that his quotation for Twitter is too high.
Tesla officials have yet to respond to analysts' comments.
Look out for twitter
Dan ives, a well-known analyst at Wade Bush securities, said Musk's plan to privately acquire twitter had brought great uncertainty to Tesla's share price.
IFOS claims to have paid attention to musk for decades. He believes that Musk's performance in recent weeks is not ideal and is out of focus on the unique points of push.
Ives said that Musk's acquisition of twitter this time was unreasonable, which also had a negative impact on Tesla's share price.