Tesla is likely to buy back up to $ 10 billion in stock next year

The American billionaire giant, as well as CEO of the well-known company of auto electric “Tesla” said the company could buy shares of up to $ 10 billion next year.

Musk hinted that “Tesla” could buy back up to $ 10 billion of its stock next year, after claims were raised for it due to a drop in the manufacturer’s shares. auto electric questyear, according to a report published by the American “Business Insider”. And Al Arabiya.net reviewed it.

Tesla’s CEO revealed these ideas on Wednesday in a conference call after the third quarter financial report, in which has missed its turnover targets but exceeded its profits.

Musk said Tesla’s board of directors has discussed the idea of ​​a large-scale share buyback and generally thinks it “makes sense.”

“But we want to work through the right process to make the repurchase, but it is certainly possible for us to repurchase a range of $ 5 billion to $ 10 billion,” he explained.

“Also in a bearish scenario next year, although next year will be very difficult, we still have the ability to buy back from $ 5 billion to $ 10 billion, “he added.

“Obviously this is it in pending review and board approval, so we are likely to make some significant buybacks, ”he continued.

Some investors urged Tesla to buy back stock after a series of stock splits and a 36% drop in stock price questyear so far.

Liu Kuo Guan, who claims to be the manufacturer’s third sole shareholder auto electric, he asked for the move in earlier, saying that only a buyback or a doubling of earnings could stop the stock’s decline.

Tesla Inc. reported revenue of $ 21.45 billion in the third quarter, lower than analysts’ expectations of $ 21.96 billion, but adjusted earnings of $ 1.05 per share, versus the expected 99 cents.

The company’s market value was around $ 690 billion when the market closed last Wednesday.

Read More About: Business News