The CEO of Tesla, who has sold billions of dollars worth of stock so far this year, predicts that a “severe recession” will impact the desire for new automobiles in 2023.
Elon Musk, the CEO of Tesla, has stated that he will not sell any additional company stock for the next two years.
Mr. Musk, the founder of the electric vehicle manufacturer, stated in a Twitter Spaces audio conversation that a “severe recession” is likely to occur next year.
He stated that Tesla’s board is open to the notion of a share repurchase, but that it will depend on the severity of the recession.
The tycoon, who also controls Twitter and SpaceX, had earlier pledged not to sell any additional Tesla shares, but afterward did the exact opposite.
In April, he sold over $4 billion worth of Tesla shares before announcing that “no more sales are anticipated after today,” yet he has sold substantial quantities of shares multiple times since then.
He announced an additional $3.6 billion in stock transactions last week.
“I wanted to sell some stock to ensure that there is dry powder…to prepare for the worst-case situation,” he explained.
Investors are concerned that Mr. Musk’s attention has been occupied by Twitter events since he gained control of the platform in October, causing Tesla shares to decline by about 70% so far in 2019.
Despite this, Mr. Musk emphasized that Twitter is a relatively straightforward firm to manage, stating that it is “maybe 10% as hard as Tesla.”
Mr. Musk spent $44 billion to acquire Twitter to eliminate false accounts and enhance free speech, but it has not been an easy trip.
Concerns are growing about the network’s direction and Mr. Musk’s capacity to repay the $13 billion in debt he incurred to purchase it. As a result, several large advertisers have abandoned the platform.
