Tesla’s third largest individual shareholder suggests a smart TSLA buyback strategy

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

KoGuan believes Tesla can buy back its undervalued stock while investing in FSD, Optimus and more giant factories. He said the Fremont, Giga Shanghai, Giga Texas and Giga Berlin were like “money printing machines”.

Tesla generated $5 billion in free cash flow in 2021, says luck. Most of the lost year’s free cash flow came from the fourth quarter when Tesla reported generating $2.8 billion. In its Q1 2022 update letter, Tesla stated that it made $2.2 billion in the first quarter.

Tesla Bull Gary Black entered the conversation, agreeing with KoGuan. Black expects Tesla to generate $10 billion in free cash flow for 2022, excluding profits from Tesla Energy, FSD and Optimus.

KoGuan included Martin Visha in the discussion, telling Tesla’s head of investor relations that Tesla should buy back its shares. He noted that Tesla is buying back $5 billion in free cash flow this year and $10 billion in 2023.

KoGuan also noted that Elon Musk sold 25 million shares and employee stock options, increasing the supply of Tesla stock. So Tesla can buy back the cheap stock now.

“We Tesla bulls need more support,” KoGuan said. “Tesla can invest in it [Full Self-Driving]The bot and factories are buying back their undervalued stock. Shock and wake up [a] Few sane analysts come to their senses.”

Martin Viecha confirmed that KoGuan Leo is the third largest individual shareholder in Tesla after Elon Musk and Larry Ellison, founder of Oracle. to me BloombergKoGuan owns 6.31 million shares in Teslas as of September 2021. It also has options to purchase an additional 1.82 million shares at a price well below current levels.

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Tesla’s third largest individual shareholder suggests a smart TSLA buyback strategy

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