Tesla Stock Buyback? Cash Pile - With Mayur Thaker

Should Tesla use its cash pile to buy back Tesla stock? Warren talks with Mayur Thaker about a Tesla stock buyback, how to value Tesla stock, and other issues.

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#TeslaStock #Buyback #Cash

[stevevarberg]

Tesla has a prime directive and wasting money with a stock buy back is against the prime directive. End of story!

[Martinit]

Mining may be a low profit operation, but it's an enabler for car manufacturing. You don't want to be bottlenecking car factories - not in supplies that take so long to build up as mining and processing.
Having said that, I do like Mayur's idea of starting small scale buybacks (to opportunistically acquire cheap shares).

[xumba]

Tesla should have much better opportunities than buyback. They should gain much more control over supply chains and own some of critical ones. Elon’s vision of extreme scale Tesla will demand that. So no buyback no dividend please. Investors should be patient pls.

[mothanwrdz]

A stock buyback at this time in Tesla's history is for short term minded traders. Not investors. People need to remember the mission, or choose a different company to invest in.

[sholomgordon]

If Tesla buys back 5 billion dollars of stock, then the share price goes back to all-time highs, that's 100% growth. it's like they made an additional 5 billion dollars. sounds like a good idea to me.

[tipoomaster]

Not so long as they have more interesting things to do with the cash. Master Plan part 3 might come with a big increase in spending to reach "extreme scale", more interested in that than just short term financial manipulations.

[grahambrown]

Tesla spent around $5bn retiring debt and now the debt is gone, it would seem a next logical step to buy back some shares.

[davidj]

With no gf or kids Warren is pumping out the content.

[johnhanson]

In an inflationary environment one wants to be invested in assets, not cash, but if disasters happen then one needs a big cash pile. So its a trade, buy backs create an opportunity deficit, in that the cash is not available for other necessary purposes. Can be a tough question, but should be a very late and minor effect to ensure no lack of cash issues.

[marc]

A share Buyback doesn't make sense during weak economic times. Tesla needs to keep plenty of cash on hand for any unforeseen problems that may develop.

[karlm]

By far one of the most important insightful discussions on this channel! Thank you both 🧐

[BK-plvy]

Tesla as a company is already growing fast and there is always the risk that should the cash pile grow too big, there is always some pressure to spend it and thats when mistakes can occur. Case in point, if they decided to invest more in building more gigafactories, but the supply chains remain clogged and Tesla has difficulty getting sufficient parts to keep the operation going then it could be argued that they should have slowed down their gigafactories capex.

Right now, Tesla has 4 gigafactories, but even before Berlin and Texas came online, there were reports that Shanghai and Fremont were already not at full capacity. Now with Berlin/Texas online, it would appear their ramp is slower than expected. So all the drama with German bureaucracy taking so long to approve Berlin - probably did not hurt Tesla too much because the next bottleneck would come to the forth.

Tesla has been careful with their spending and do not feel comfortable spending more than 7B/year over the next 3 years and good on them for resisting the temptation to spend more just because there is a ton of cash burning a hole in their pockets

[chandrapatel]

What was your price prediction by end of April 22 and / or May 22 Mr Redich? From your past video I think it could be $4, 000 to $14, 000?

[DragnisThest]

I dont see Elon anytime soon doing a stock buy back. He wants the stock price low so employees can afford to buy. This would be counter productive.

[grahambrown]

Follow Mayur on Twitter, but not seen him on Youtube for ages, with Gali I seem to remember.
Very smart and well worth listening to 👌

[EvEvangelist]

Buy Backs are like dividends - for Companies that have no innovation No New Tech and no New (or Big) Ideas to leverage.
Right…….now I will watch the vid 😎 and learn.

[heinzbucksandcastle]

A stock buyback is a great idea, but I don't see any moves when the market is falling this hard. The Tesla board will wait until later this year for big moves.

[Zaerki]

The point of the issue is that Tesla has no debt. Letting cash sit on the balance sheet does nobody any good. They either need to make more sensible investments or return value to shareholders.

If they have no meaningful investment option, and they have sufficient cash to fund the business operations for years, they should be buying stock.

[marioxmariox]

A buyback now while Tesla stock is very undervalued would bring the most good to long term investors. A $5 billion buyback today would be the same as doing it a year from now when it would cost $10 billion for the same amount of shares.

Plus the buying pressure would make all Tesla investors feel a lot better right now.

[bkterence]

35 min was great question. The fact that Tesla is not investment grade means Tesla should have more cash war chest because of the FUD + animosity against Tesla. You do not want to be in a situation where you need to borrow for the short term.