Elon Musk added 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 plunging 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 shed 6% at $207.84 and has lost more than 40% this year amid aggressive interest rate hikes from the Federal Reserve, fears of a recession, and Musk’s Twitter takeover bid, which would involve his Tesla shares.
He is currently grappling with 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 recently that Musk is at risk of losing his financing for the deal.
