Tesla CEO Elon Musk said in new statements that he does not plan to sell shares in the company for two years, according to Archyde.com.
And it was Musk has sold shares in the company this year, worth nearly $40 billion. This is to finance the acquisition of Twitter.
On the other hand, Musk indicated that he prefers to buy back Tesla shares when the picture becomes clearer regarding the direction the economy will take and when the company’s financial performance is confirmed, and its cash reserves are not spent.
Tesla shares fell to a new 52-week low last Tuesday, closing at regarding $138 a share, or down 8% in one session.
The company’s CEO has tried to blame the price drop in part on macroeconomic factors.
Musk’s comment came in response to a tweet by a Tesla shareholder, Ross Gerber, who wrote: “Tesla’s share price now reflects the value of not having a CEO… it’s time for a change.”
“As the risk-free real rate of return for Treasury bills approaches the riskier rate of return for equities, the value of stocks drops,” Musk said.
He explained, “For example, if both treasury bills and stocks have a rate of return of 10%, everyone will only buy the first one,” according to CNBC, which was viewed by Al Arabiya.net.
But Tesla’s stock has fallen more than other major automakers since Musk announced his plans to buy Twitter in April 2022.
