Image: ddp images / Sipa USA via AP
Elon Musk said he does not plan to sell Tesla shares over the next two years. This may have reassured some investors as the stock rose 3.4% after hours.
Elon Musk's recent sell-off of Tesla shares to finance his purchase of Twitter has shaken the confidence of some investors in the company and its CEO. Investors expressed their disappointment and some of them backed up their words with actions by selling part of their shares. However, investors now appear to have gained more confidence following Musk's Twitter Space speech on Thursday, as the stock surged 3.4% to $128.75 (at the time of writing) within an hour of his appearance there. If this rally continues through Friday's trading, it could end a five-day losing streak.
During a conversation with investors, Musk said he had no plans to sell Tesla shares within the next two years. “I will not sell stock until at least two years from now. Certainly not next year under any circumstances,” he said. The announcement must have reassured some investors who feared that the CEO would continue selling to fund Twitter's development.
In addition, Musk said he favors a buyback of Tesla shares once the company becomes more confident in the direction of the economy. “My vote is to do a buyback once we’re able to properly calibrate the scale of the recession and make sure Tesla is healthy and not spending its cash reserves and putting the company at risk,” he said.
Musk also assured an audience of more than 60,000 people that he was giving Tesla the attention it needed. The CEO said that he did not miss a single important meeting of Tesla as the company is much more complicated than Twitter.
The CEO is confident that Tesla will handle the recession better than any other company. “If you are a ship in the storm, even if you have a great ship, you are still going to be hit. There is latency in the supply chain,” he said. “I think Tesla will weather an upcoming economic storm better than any company. Unless the company is making bread,” Musk added.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.