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Tesla Investor Calls for Share Buyback after Musk's Twitter Deal Hurts Stocks

Reuters2022-05-20

Leo KoGuan, a major individual investor in Tesla, on Thursday called on the electric carmaker to buy back shares, after Tesla stocks took a hit from CEO Elon Musk's deal to buy Twitter.

The comments came as high-profile Tesla bull Daniel Ives, an analyst at Wedbush, on Thursday cut the target share price of Tesla due to China production disruption, and warned of "distraction risks" from Musk's Twitter deal.

Tesla shares lost one third of their value since Musk disclosed his stake in Twitter in early April and sold $8.5 billion worth of Tesla stocks in a move seen to help finance his $44-billion Twitter deal.

Further hurting stocks is China lockdown measures that dampened Tesla's production and an exclusion of Tesla from a widely-followed S&P sustainability index.

"Tesla must announce immediately and buy back $5 billion of Tesla shares from its free cash flow this year and $10 billion from its free cash flow next year, without effecting its existing $18 billion cash reserves with ZERO debt," KoGuan said in a Twitter message to Tesla's head of investor relations, Martin Viecha.

Viecha was not immediately available for comment.

Last year, KoGuan claimed in a tweet that he was the third largest individual shareholder of Tesla who owns more Tesla shares than that of ARK Invest and Baron Capital. Viecha at that time said he "confirmed" the claims.

KoGuan previously said he was investing billions in Tesla because he believes in Musk's "great vision I share." He said in March that he was buying more Tesla shares, not selling during the stocks' dip.

Tesla bull Gary Black, portfolio manager at The Future Fund, told Reuters, “If he (Musk) could get out (of the Twitter deal) Tesla’s stock would go up 10%."

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Comment75

  • hphoa
    ·2022-05-20
    Talk shit
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  • Ray19
    ·2022-05-20
    Waiting for inflation to fully take place and stocks to drop further then ADD
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  • Sharkie
    ·2022-05-20
    If you are buying for the long term, we don't haveto worry too much about the frequent dips. Can try dollar cost average on those companies that you have conviction 
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  • KlC
    ·2022-05-20
    Buy??
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  • Toh_Chris
    ·2022-05-20
    Drama drama
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  • blessed_1
    ·2022-05-20
    time to buy?
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  • Rara08
    ·2022-05-20
    Ok
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  • AzriTan
    ·2022-05-20
    Let's hope for this 
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  • ShadowBan
    ·2022-05-20
    buy buy buy
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  • Troytan
    ·2022-05-20
    Musk tweet is a balancing act for Telsa and        Twitter share price. Sigh 💩
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  • Mr Mooney
    ·2022-05-20
    More downside for Tesla share soon...initially it is over priced
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  • Dragon1976
    ·2022-05-20
    Roar
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  • Jeremysee
    ·2022-05-20
    Keep dipping.
    Reply
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  • tungleh
    ·2022-05-20
    Dont think EM will buyback. He has announced that he wants to buy twitter on media, so I think he will try to make it happen. 
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  • CYKuan
    ·2022-05-20
    We as layman will never know what has EM got up his sleeve. Sit still and the century show is just started, happy watching [smile]$Tesla Motors(TSLA)$$Twitter(TWTR)$
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  • keith0083
    ·2022-05-20
    Buy the dip 
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  • Chris Tan
    ·2022-05-20
    Better 🏃‍♂️🏃‍♂️🏃‍♂️Before more bleeding
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  • K74
    ·2022-05-20
    Wow 
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  • BlitzBison
    ·2022-05-20
    Ok
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  • Chitooctto
    ·2022-05-20
    Like
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