Elon Musk.
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- Investor patience Tesla is getting thinner as CEO Elon Musk shifts his focus to running Twitter.
- KoGuan Leo, Tesla’s third-largest individual shareholder, tweeted that maybe it’s time for a new CEO.
- “Elon has given up on Tesla and Tesla has no working CEO. Tesla needs and deserves a full-time working CEO,” Leo tweeted on Wednesday.
Tesla the investor is increasingly frustrated with falling stock prices and one CEO is dividing his time to run three different companies.
It became so as Tesla’s third-largest individual shareholder, KoGuan Leo, was calling for a new CEO to take over the electric-car maker, which would allow Musk to focus on his other business ventures. like SpaceX and Twitter.
“Elon abandoned Tesla and Tesla has no working CEO,” KoGuan Leo tweeted on Wednesday. “Tesla needs and deserves a full-time CEO.”
KoQuan Leo accumulated 22.7 million shares in Tesla as of September, is currently worth $3.57 billion. Leo built his stake in Tesla during the early days of the COVID-19 pandemic, when the stock traded at a split-adjusted price of about $40 from today’s $157.
Tesla shares are down 55% year-to-date, and the stock has lost about $225 billion in market value since Musk closed the deal to buy Twitter in late October. That decline comes at a time point that S&P 500 rose more than 3%, so investor concerns are real and Wedbush analyst Dan Ives called Musk’s venture on Twitter a “circus” and “a twilight zone”.
Despite his disappointment, Leo will not sell his Tesla stock. Instead, he plans to buy more because he believes the stock is undervalued and the company still has room to grow with a laser-focused CEO.
“Honestly, dear friend, I don’t care if Elon stays or leaves Tesla. Tesla is a great company and $160/shr is cheap,” Leo said, adding that he wanted to. met an executive similar to Tim Cook to take over the company.
“Elon is just a hired hand. He’s our employee… Elon is a proud father, Tesla has grown up… Needs an executioner, like Tim Cook, not Elon,” Leo wrote on Twitter. “I plan to invest another billion dollars because Tesla will be the biggest company with or without Elon.”
In an apparent reference to options trading, Leo said he would buy 3 million more shares at $160 a share if Tesla fell below $160 in a few weeks, but what does Annoying Leo is that while he’s buying Tesla stock, Musk is selling.
“I just invested another $500 million today to support Tesla stock price @ $160 while Elon sold $35 billion of his stock and possibly more in the last few days,” Leo said. tweeted.
Hours after this tweet, it was revealed that Musk sold another 22 million shares for $3.6 billion earlier this week. Incidentally, Musk’s sales for a week are roughly equal to the amount of Tesla stock Leo owns.
