If you’re looking to buy some Tesla stocks, it is not the right time to do that, as Elon Musk announced that he would not sell more Tesla stocks for the next two years.
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Tesla’s Elon Musk announced he would not be selling more stocks of his electric car company for about two years. On Thursday, while conversing on Twitter Spaces audio chat, Musk said that the electric motor company’s economy would be in a severe recession in 2023.
The demand for big-ticket items would be lower. It was being said that Musk took this decision after softening demand for electric cars and distraction with his Twitter unpredictable takeover journey.
He made a statement that he would not be selling the stocks probably two years from now. It would not be the next year and probably not the year after that under any circumstances, according to Musk.
After-hours trading on Thursday, Tesla shares rose 3% to $129.23. These numbers were after an 8.9% drop in regular trading hours.
Last week, Musk announced $3.6 billion in stock sales, taking his total to nearly $40 billion last year. He said he wants to sell some stocks to ensure that there is a powder dry to account for a worst-case scenario.
However, the board was open to sharing buyback, but it all depends on the scale of a recession. After Tesla began offering $7500 discounts to US consumers and fuelling investors, the electric car company’s stocks plunged 9%.
According to Musk, there will be higher macro drama than people currently think. And adding cars and homes will get disproportionately affected by economic conditions.
Musk, early this week, announced that he would step down as a Twitter’s CEO once he found someone to take the job.
He said Twitter is a relatively simple business. It is maybe 10% of the complexity of his electric car company, Tesla. So, bringing someone new who is eligible to replace him as Twitter’s CEO will help him to focus on Tesla.
In response to his controversial tweets alienating people, Musk said he would not suppress his views to boost the price.