Tesla’s 3rd-largest individual shareholder suggests clever strategy for TSLA buyback

The third largest individual Tesla shareholder, KoGuan Leo, advised the company to buy back TSLA shares with its free cash flow.

KoGuan believes that Tesla can buy back its undervalued stocks while investing in FSD, the Optimus, and more gigafactories. He argued that the Fremont Factory, Giga Shanghai, Giga Texas, and Giga Berlin were like “money printing machines.”

Fremont, Shanghai, Austin and Berlin money printing machines are running in full speed, Tesla can invest in FSD, bot and factories while buying back its undervalued stocks. Shock and wake up few braindead analysts to their senses. Tesla is a Phoenix rising from the ashes. https://t.co/NMqf79f0Ld

— KoGuan Leo (@KoguanLeo) May 19, 2022

Tesla generated a free cash flow of $5 billion in 2021, reported Fortune. Most of its free cash flow lost year came from the fourth quarter when Tesla reported generating $2.8 billion. In its Q1 2022 Update Letter, Tesla stated generating $2.2 billion in the first quarter. 

Tesla Bull Gary Black chimed in on the conversation, agreeing with KoGuan. Black predicted that Tesla would generate $10 billion in free cash flow for 2022, excluding profit from Tesla Energy, FSD, and Optimus. 

KoGuan included Martin Viecha in the discussion, telling Tesla’s Head of Investor Relations that Tesla must buy back its shares. He suggested that Tesla buy back $5 billion shares from its free cash flow this year and $10 billion in 2023. 

Gary projects incredible free cash flow EXCLUDING energy, FSD and Teslabot:
2022: $10B
2023: $20B
2024: $32B
2025: $50B
2026: $68B
Elon sold 25M shares+employees’s stock options that greatly increase the supply during this bear market. Reasonably, Tesla buys back its cheap stocks pic.twitter.com/GVOWnUIaJ8

— KoGuan Leo (@KoguanLeo) May 19, 2022

KoGuan also pointed out that Elon Musk sold 25 million shares and employees’ stock options, increasing the supply of Tesla stock. So Tesla can buy back cheap stocks now. 

“We Tesla bulls need more support,” KoGuan said. “Tesla can invest in [Full Self-Driving], bot and factories while buying back its undervalued stocks. Shock and wake up [a] few braindead analysts to their senses.”

Martin Viecha confirmed that KoGuan Leo is the third largest individual Tesla shareholder after Elon Musk and Larry Ellison, the founder of Oracle. According to Bloomberg, KoGuan owns 6.31 million Teslas shares as of September 2021. He also has options to buy 1.82 million more shares at a strike price well below the current levels.

The Teslarati team would appreciate hearing from you. If you have any tips, reach out to me at maria@teslarati.com or via Twitter @Writer_01001101.

The post Tesla’s 3rd-largest individual shareholder suggests clever strategy for TSLA buyback appeared first on TESLARATI.

Source: TESLARATI

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