Ahead Of Tesla's Q3 Earnings, Fund Manager Gives One Reason Why The EV Maker Should Initiate $10B Stock Buyback
Portfolio Pulse from Shanthi Rexaline
Ahead of Tesla's Q3 earnings, Future Fund Managing Partner Gary Black suggests that Tesla should initiate a $10B stock buyback to prop up the sagging stock. He estimates a free cash flow of $53 billion over the next five years, even after Tesla funds investments in full-self driving, new Gigafactories, bots or any other capital expenditures. A $10 billion buyback over three years would offer a 38% return of the future free cash flow to shareholders without touching the existing $22 billion cash on the balance sheet.
October 14, 2023 | 8:59 pm
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Tesla's stock could potentially benefit from a suggested $10B stock buyback over three years, offering a 38% return of the future free cash flow to shareholders.
The suggestion of a $10B stock buyback over three years could potentially boost Tesla's stock. This would offer a 38% return of the future free cash flow to shareholders without touching the existing $22 billion cash on the balance sheet. However, the actual impact would depend on the company's decision and market reaction.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100