Tesla CEO Elon Musk in an announcement on Thursday said that he will not be selling any more Tesla stock for the next two years.
Musk predicted in a Twitter Spaces audio chat that the economy will be in a “serious recession” next year, with lower demand for big-ticket items.
“I won’t sell stock until I don’t know probably two years from now. Definitely not next year under any circumstances and probably not the year thereafter,” the billionaire said.
Tesla shares rose 3% to $129.23 in after-hours trading on Thursday, following an 8.9% drop during regular trading hours.
According to a Bloomberg report, Musk’s net worth fell by $7.7 billion on Tuesday after Tesla Inc. shares fell by the most in a single day since October.
“I think there is going to be some macro drama that’s higher than people currently think.” He went on to say that economic conditions will have a “disproportionately negative impact” on homes and cars.
Musk stated that Tesla is nearing a decision on the location of its new “Gigafactory.” According to a local newspaper, Tesla could announce plans to build a “Gigafactory” in the northern Mexican state of Nuevo Leon as early as Friday, with an initial investment of $800 million to $1 billion.
Musk has previously stated that he will not sell Tesla stock before selling it. Musk disclosed another $3.6 billion in stock sales last week, bringing his total since late last year to nearly $40 billion and frustrating investors as the company’s shares slump to more than two-year lows.
“I needed to sell some stock to make sure, like, there’s powder dry…to account for a worst case scenario,” the billionaire said.
Since Musk announced his plans to buy Twitter in April 2022, Tesla’s stock has fallen more than that of other larger automakers. Tesla shares have fallen 59% since that date, compared to 26% for Ford and 12% for GM.
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