Electric vehicle maker Tesla (TSLA:NASDAQ) is mulling a massive share buyback as it looks to bolster its stock price. Elon Musk recently revealed that the Tesla board has ‘debated the buyback idea extensively,’ and that the general feeling was that it ‘makes sense’.

Musk said that it was ‘likely that we will do some meaningful buyback,’ with up to $10 billion mooted, pending board review and approval.

Tesla has fallen 23% over the past month as investors grapple with the prospect of rising competition, falling demand from a weakening global economy and stubbornly resistant supply chain issues.

Delayed third-quarter economic data from China showed GDP grew 3.9% over the past 12 months, better than 0.4% reported for the previous quarter, but well below the Communist Party’s 5.5% growth target. China is world’s largest market for electric vehicles.

Earlier this week Tesla announced that it was slashing the cost of its Model 3 and Model Y vehicles in China by up to 9%, with CMBI analyst Shi Ji warning of a ‘possible price war’.

Tesla has been ramping up production in China this year as it looks to capitalise on the enormous potential for electric vehicle sales. In September, Tesla set a new monthly record of 83,135 China-made vehicles sold in the country, the China Passenger Car Association reported.

‹ Previous2022-10-27Next ›