Billionaire Leo Koguan, who describes himself as the third-largest individual shareholder of Tesla stock, has called on the automaker to announce a $15 billion share buyback as the company's stock price continues to fall.
In a tweet to Martin Viecha, Tesla's senior director of investor relations, Koguan said the company should immediately announce plans to buy back $5 billion of Tesla stock this year and $10 billion next year. He added that Tesla should use its free cash flow to fund the buyback and should not affect its existing $18 billion cash hoard.
In a follow-up tweet, Koguan said Tesla had free cash flow of $2.2 billion in the first quarter of this year. He added that after accounting for capital spending, he expects it to climb to $8 billion this year and $17 billion next year.
Tesla shares closed down more than 6 percent on Wednesday amid a broad market sell-off. The company's shares have fallen more than 30% this year. Tesla was down slightly in early trading Thursday.
I think Tesla should do this, after multiple public companies have announced this decision.
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