After Tesla announced layoffs, Musk bought Tesla shares for $24.9 million
[Introduction]: Tesla announced that it will lay off 9% of its employees yesterday, which means that 4,000 people will be unemployed. Today, Musk bought the Tesla stock for $24.9 million. What is the big move of Musk, and the revitalization of the downturn Pull the stock price?
According to a US Securities and Exchange Commission (SEC) document, in the past two days, Elon Musk purchased 72,500 shares of Tesla stock at a price between $342 and $347. . The total value of these stocks is approximately $24.9 million.
Tesla has a large number of skeptics, but Musk continues to buy shares in the electric car manufacturer in cash. At the beginning of May, Musk also purchased 33,000 shares of Tesla, which had a total value of about $10 million. At the time, Tesla's share price was slightly below $300.
Musk is the largest shareholder of Tesla. He now holds approximately 33.7 million shares of Tesla, representing approximately 19% of the company's total issued shares.
Tesla declined to comment on the content of the documents submitted to the SEC.
Musk made the decision to purchase Tesla shares shortly after Tesla announced that it would lay off about 9% of its employees. Since the Tesla Model 3 electric sedan has been put into production, its production targets have not been realized many times, and it often faces the dilemma of “capacity slopeâ€. However, the company is working hard to increase productivity and profitability.
Tesla continues to consume billions of dollars in cash reserves and faces challenges in several areas, including labor disputes, executive departures, and its Autopilot driver assistance system in some high-profile car accidents. Survey of roles, etc.
Although Musk has confidence in Tesla, according to financial analyst firm S3 Partners, Tesla is the shortest US stock, with a short position of $12.82 billion, accounting for 22% of all outstanding shares.
In contrast, Apple is the second-largest US stock to be short-selling, Amazon is third, and Netflix is ​​fourth.
But S3 Partners said Tesla's share price has risen 18% since June 1 this year, and short sellers lost about $2 billion.
Despite this, short sellers such as Jim Chanos, founder and head of Kynikos Associates, the world's largest short-term fund company, still believe that Tesla has some fundamental problems in achieving profitability. .
On Wednesday, US time, Chanos said on CNBC's "Closing Bell" program: "The fundamental problem is that the gross profit margin of Tesla's production is not enough to make it profitable." He added that with more and more Competitors are starting to emerge, and it may be more difficult for Tesla to make money in the auto business.
Tesla expects Model 3's gross margin to break even in the second quarter of this year, turning positive in the third and fourth quarters. The company still sets its long-term gross profit margin target for its automotive business at 25%.
It is true that Tesla can make profits through layoffs. It may be true that some of the pressures can be alleviated. Now, Musk’s intention to buy stocks of his own company is very obvious. It is to boost confidence and eliminate haze.
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