Photo: Tesla
A major individual investor in Tesla, Leo KoGuan, on Thursday called on the leading EV automaker to announce a $15 billion stock buyback. The call came as Tesla stocks continue to take a dip after the CEO, Elon Musk, expressed his interest in acquiring popular social media platform Twitter, Reuters reported.
The billionaire, in a tweet to Martin Viecha, Tesla's senior director of investor relations, said the auto company needs to immediately make plans to buy back $5 billion of Tesla shares this year and another $10 billion next year.
Last month, Tesla CEO Elon Musk, a leading Twitter shareholder with a 9.2% stake (3.5 billion investment), made an offer to acquire the social media platform for $54.20 per share, totaling $44 billion.
Last week, the CEO temporarily put the deal on hold while waiting for data on the proportion of the platform's fake accounts.
KoGuan, who also claims to be Tesla's third-largest shareholder, asked the management to deploy its free cash flow to fund the buyback. The move is a clear sign that the owners are getting restless.
"We Tesla bulls need more support," he added, pointing to the automaker's substantial cash reserves.
It's the first time the EV automaker is paying cash dividends or buying back its shares since it reinvested everything back to finance its overall growth.
Returning cash to investors is a move mature companies would consider when there are few entrepreneurial opportunities and the return warranted a risk, Fortune reported.
Singapore-based billionaire, KoGuan said he was pumping billions into Tesla because he believes in the CEO's vision.
Tesla CEO Elon Musk seems to have a way with the market. Every move he makes affects the share price. After his latest move to temporarily 'put on hold' the Twitter deal, the social media platform's shares dropped by 17.7% to $37.10 last week in premarket trading.
Gary Black, a Tesla bull and portfolio manager at The Future Fund, feels if Musk got out of the Twitter deal, Tesla's stocks would rise by 10%.
Last month, Tesla CEO Elon Musk, a leading Twitter shareholder with a 9.2% stake (3.5 billion investment), made an offer to acquire the social media platform for $54.20 per share, totaling $44 billion.
Last week, the CEO temporarily put the deal on hold while waiting for data on the proportion of the platform's fake accounts.
KoGuan, who also claims to be Tesla's third-largest shareholder, asked the management to deploy its free cash flow to fund the buyback. The move is a clear sign that the owners are getting restless.
"We Tesla bulls need more support," he added, pointing to the automaker's substantial cash reserves.
It's the first time the EV automaker is paying cash dividends or buying back its shares since it reinvested everything back to finance its overall growth.
Returning cash to investors is a move mature companies would consider when there are few entrepreneurial opportunities and the return warranted a risk, Fortune reported.
Singapore-based billionaire, KoGuan said he was pumping billions into Tesla because he believes in the CEO's vision.
Tesla CEO Elon Musk seems to have a way with the market. Every move he makes affects the share price. After his latest move to temporarily 'put on hold' the Twitter deal, the social media platform's shares dropped by 17.7% to $37.10 last week in premarket trading.
Gary Black, a Tesla bull and portfolio manager at The Future Fund, feels if Musk got out of the Twitter deal, Tesla's stocks would rise by 10%.
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