Investor Tesla is demanding a $ 15 billion share buyback after the stock price fell

Billionaire Leo Coguan, who claims to be the third largest individual shareholder Tesla shares, urges automakers to announce a $ 15 billion share buyback as the company’s share price continues to fall.

У tweet To Martin Vieca, Tesla’s senior director of investor relations, Coguan said the company should immediately announce that it plans to buy back Tesla shares for $ 5 billion this year and $ 10 billion next year. He added that Tesla should use its free cash flow to fund the buyout and that it should not affect existing cash reserves of $ 18 billion. Tesla did not immediately respond to CNBC’s request for comment.

Tesla shares closed more than 6% on Wednesday amid widespread sales in the market. This year the company’s shares have fallen by more than 30%.

Share redemption – when an open company uses cash to buy its own shares on the open market – is a method that firms use to try to return capital to shareholders.

Redemption rose to a record high of $ 850 billion in 2021. During the year, Apple bought out more of its own shares than any other public company and then Alphabet and then The goal. Announced the alphabet another $ 70 billion ransom last month.

Coguan “put home” on Tesla at the start of the coronavirus pandemic, according to Forbes in an October report that said he earned billions by long engaging in electric vehicle manufacturers. Coguan reportedly went all-in at Tesla after selling its shares in other companies such as Baidu, Nvidia, China Mobile and Nio.

“I considered myself a fan of Ilona,” Coguan said. “I’d say he’s the only person I really respect on Earth.”

Musk, the world’s richest man on paper, said on Tuesday that he had postponed the deal with Twitter until he gets more information on how many fake or spam accounts on social media.

Jefferies analysts said Tuesday that Musk seems to be trying to lower the price due to a recent sell-off in the market.

“Ilona Musk’s recent comments suggest he is trying to negotiate a lower bid price,” said Brent Till, a stock analyst and equity officer James Heaney, in a research note.

“We believe Musk is using his investigation into the percentage of fake TWTR accounts as an excuse to pay less than $ 54.20 per share. In fact, NASDAQ COMP decreased by 25% since the beginning of the year [year-to-date] and Elon Musk understands he may be overpaying for the asset. ”CNBC contacted Tesla to respond to comments, but received no response.

Wedbush and Tesla bull analyst Dan Ives told CNBC on Wednesday that Mask’s plan to buy Twitter was a “big canopy” on Tesla shares.

Ives, who says he has watched Musk for decades, said Musk has gotten a “black eye” in the past few weeks.

“I think the way he handled it was unreasonable,” Ives said, adding that it “left a little stain” on Tesla shares.