Shulou(Shulou.com)11/24 Report--

Phoenix New Media Technology News Beijing time on October 20 news, Tesla CEO Elon Musk (Elon Musk) said on Wednesday that the company may buy back up to $10 billion worth of shares. Earlier, Tesla's third-quarter revenue fell short of expectations, and CFO lowered its full-year delivery forecast, causing Tesla's share price to fall.

Buy-back stock

After Tesla completed several share splits and lost more than 1/3 of his market value this year, some Tesla investors have been encouraging Tesla's share buyback. On the earnings call, Mr Musk said Tesla's board of directors had discussed a $5 billion-$10 billion buyback plan.

"We had a wide debate on the idea of buybacks at the board level. the board generally believes that share buybacks make sense and we want to do them through the right procedures, but given the very difficult situation next year, we are likely to conduct buybacks of between $5 billion and $10 billion in the event of an economic downturn." "this is obviously subject to the evaluation and approval of the board of directors," he added. therefore, we are likely to make some meaningful buybacks. "

Musk also dispelled concerns that market demand was falling because of the economic downturn. "in the farthest future we can see, the company expects to be able to sell every car we produce." He said.

Unable to meet delivery target

Mr Musk's comments on share buybacks did not immediately boost the share price after Tesla CFO Zakary Kirkhorn (Zachary Kirkhorn) lowered his car delivery forecast for this year. "due to the increase in car orders in transit (undelivered) at the end of the year, we do expect delivery growth to be slightly less than 50 per cent." He said.

Kirkhorn attributed the lower delivery growth target to a change in the way the company makes and sells cars. Tesla delivered about 936000 cars in 2021 and needs to deliver more than 1.4 million this year to grow by 50 per cent. Mr Kirkhorn said the company would increase car production by 50 per cent, "although we are tracking supply chain risks beyond our control".

The market capitalization exceeds that of Apple.

Musk has set a new goal for Tesla, which is to have a market capitalization that exceeds that of Apple and Saudi Aramco combined. "now, my view is that we can far exceed Apple's current market capitalization. I think Tesla is likely to be worth more than Apple and Saudi Aramco combined." He said. Apple currently has a market capitalization of $2.3 trillion, Saudi Aramco $2,000bn, while Tesla has a market capitalization of only $700 billion.

Twitter acquisition

When asked about the acquisition of Twitter, Musk said: "I am very excited about Twitter."... I think this is an asset that has lost its vitality for a long time, but it has amazing potential. Twitter's long-term potential is an order of magnitude greater than its current value. " He said.

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