Elon Musk said on Thursday that he will not sell Tesla stock for about two years, and that the economy will experience a “severe recession” in 2023, as demand for high-value products declines. Reuters.
The reports come after investors sold off Tesla shares on fears that the most valuable electric car maker’s chief executive and major shareholder is too concerned with social network Twitter.
“I will not sell shares after two more years. Certainly not next year, in any case, not the next year either,” said the American billionaire, who lost the No. 1 spot on the list of billionaires after buying the social network, after weeks of chaotic management.
On Thursday, Tesla shares fell 8.9% during the trading session and were up 3% at $129.23 in after-hours trading on the New York Stock Exchange.
Tesla has decided to offer US customers a $7,500 rebate if they buy two of its cheapest models by the end of the year, a move that will reignite debate over the problems Tesla faces in meeting its delivery targets.
Tesla’s $7,500 discount for buyers of a Model 3 sedan or Model Y SUV is more than double what the same company offered earlier this month, and may be related to changes in the U.S. tax law that take effect in 2023.
Last week, Musk announced a new stock sale for $3.6 billion, bringing his share sales so far this year to nearly $40 billion, which has frustrated investors.
Tesla’s board is open to the idea of a stock buyback, but activity depends on the extent of the slowdown, Musk said. Tesla shares are at their lowest level in more than two years.
“I think the economic problems are going to be bigger than people think right now. Homes and cars are going to be disproportionately affected by economic conditions,” says Musk.
Tesla has become one of the most valuable companies in the automotive industry by mass-producing electric cars, meanwhile, it has also expanded into the segment of batteries for electric networks and photovoltaic power generation systems.
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