Tesla Chief Executive Officer Elon Musso said that he would not be selling any Tesla stock in the next two years.
Musk spoke in an audio chat on Twitter Spaces, saying that he expects the economy to be in “serious decline” by 2023. Also, the demand for large-ticket items would be lower.
After Thursday’s Tesla stock decline, which was exacerbated by fears about a softening demand and Musk’s distracting tweets and stock sales, Musk made these comments.
Musk stated, “I will not sell the stock until it is clear that I do not know what the future holds.” Musk stated that he would not sell stock next year in any circumstance and most likely not the year after.
After an 8.9% decline in regular trading hours, Tesla shares rose 3.3% to $129.23 on Thursday.
Musk previously promised not to sell Tesla stock until he later sold it. Musk announced last week another $3.6 Billion in stock sales. This brings his total to nearly $40 billion. Investors are disappointed that the shares of Tesla have stagnated at below two years.
The billionaire stated that he needed to dispose of stock in order to ensure there was powder on the ground. This is to prepare for what could happen.
According to him, Tesla’s board was open to share buyback if there is a severe recession.
Tesla stock plunged 9.9% on Thursday after Tesla began to offer $7,500 deep discounts to U.S. customers. This raised investor concern about a slowing economy and causing softer demand.
He said that he believes there will be “macro drama” that is more severe than most people think. He also stated that cars and homes would be “disproportionately affected” by the economic environment.
Musk stated that Tesla was close to choosing its “Gigafactory” site. According to Reforma, Tesla may announce the construction of a “Gigafactory”, in northern Mexico’s Nuevo Leon, as early as Friday. The initial investment is between $ 800 million and $1 billion. Reforma reports on Monday.
Musk was asked if he would hire David Sacks, a venture capitalist to manage Twitter so that he could focus on Tesla.
Musk stated that Twitter is only 10% of Tesla’s complexity.
Musk stated earlier in the week that he would resign as Chief Executive of Twitter when he meets “someone foolish enough” to fill the position.
Responding to concern that his controversial views were causing some people to be alienated, he stated, “I don’t want to suppress my views in order to increase the stock market.”
Musk uses Twitter’s audio streaming service to voice his opinions on product development and strategy at the company he bought privately last October for $44 billion.