Gary black proposes a 10 billion share buyback for Tesla stock which has the potential to Skyrocket the price back to pre-split numbers in a matter of days keep watching and I'll break down the news welcome to trade daily where we break down all the best stock market news like And subscribe to keep up to date with the stock market and I really hope you enjoy this video Gary black proposes a 10 billion dollar share buyback for Tesla spread out over three years the fund manager also shared his
expectations from Tesla's Q3 print Gary black the managing partner of the future fund LLC created his views on Tesla ahead of its third quarter results scheduled for Wednesday black suggests that Tesla's board could authorize a 10 billion dollar share buyback program and use 5 billion to immediately buy back shares from CEO Elon Musk this would solve the dual purpose of helping musk Finance the Twitter bio and also reduce the overhang on Tesla's shares and improve earnings per share on receiving Flack for his
proposal black further explained that the buyback must be proposed over three years with 18.9 billion dollars in cash and the expectation of earning 100 billion dollars in free cash flow over the next three years this means he expects a nearly 10 X's investment in three years showing how confident he is about Tesla a 10 billion dollar buyback wouldn't hurt the company black added his assumption also includes all costs incurred toward capex including 35 billion dollars for new gigas Optimus
Dojo Robo taxis and other initiatives while giving his suggestions black also shared the open letter written to Tesla's board as per the letter Tesla is the largest holding of the future fund and the company continues to stuff full conviction and Tesla's products strategies and management team on Tesla's Q3 results black expects management to give more clarity on Tesla's Q3 delivery shortfall and whether the same will persist in Q4 black noted despite a risk TSLA MGMT gives a cautious outlook on four Cube
deliveries on wed's free Q conference call we remain bullish on Tesla with EV adoption soaring in Europe and China the U.S EV credit kicking in 1q and at least one new Factory and cyber truck in 2023 our Tesla 550 price target has the potential to reach as high as 800 by summer 2023 what is the future price of Tesla stock the average Tesla price Target is 325.34 dollars which implies 58.7 upside potential to current levels Tesla stock has a moderate buy consensus rating based on 19 buys 7 holds and 4 sells
meanwhile the stock has lost 48.7 so far this year investors are weighing these growth signals against Tesla's lower stock price shares of Tesla were up as high as 4.8 percent this morning before cooling off by the afternoon as of 12 37 PM when the stock was still holding a 0.70 gain on the day slightly trailing the broader Market year to date the stock has fallen 37 percent wolf research released its findings on the potential impact of the electric vehicle incentives included in the inflation reduction act Plus
Tesla is looking to add almost 7 000 jobs despite weakening Auto Sales across the industry year to date wolf research analyst Rod lash said that the inflation reduction act could benefit the larger Ed makers such as Tesla a week ago Goldman Sachs labeled Tesla and General Motors as its favorite picks in the auto space due to the catalysts with the IRA it's also a positive indicator for Tesla's near-term demand that it is looking to hire thousands of employees the job listings reportedly represent a
50 jump from June most of the job openings are spread across its factories in the U.S with over 200 openings listed for its China Factory in Shanghai Tesla said that it delivered over 343 thousand vehicles in the third quarter which missed estimates and set the stock down at the start of October investors initially saw the delivery Miss as a sign that Tesla's demand was plunging with the rest of the industry but it noted that there were cars still in transit at the end of September that skewed the delivery totaled downward
investors will get more clarity on demand when Tesla reports third quarter results Tesla will report Q3 earnings after the close on Wednesday delivery numbers already released have set the bar low further Clarity over China and cost control measures are key test level get earnings season off to a hectic start this Wednesday the stock is under pressure along with many others from the ongoing bear Market in stocks and bonds Tesla 2 is suffering from the lack of interest in former high growth but High
valuation names as investors fix instead a more defensive value criteria by these measures Tesla should struggle as it still trades on a trailing of over 60. Tesla will update the market when it releases earnings after the close on Wednesday this is one of the most anticipated releases of the whole season along with apple we already have delivery data which was somewhat underwhelming so earnings will show how this disappointment has impacted the bottom line margins will be the obvious metric to focus on as will future
guidance Telsa is expected to post earnings per share of 1.03 dollars in revenues of 22.2 billion dollars Q3 delivery data has already pushed some of the bad news into the price Tesla announced Q3 deliveries at 344k when analysts have been expecting 358k delivery data came out on the weekend of October 1 and on Monday October 3 Tesla lost over eight percent since the delivery data was released Tesla stock has fallen over 20 percent have investors already penciled in the bad news then thus increasing the risk
reward in the event of a better than expected number we can see clearly the delivery data sell off from 2065 down to 205 dollars this is now key support but the selling pressure intensified last Friday Tesla closed lower by over seven percent that may present a short-term trading opportunity also things may appear stretched the stochastic indicator is oversold and the relative strength index RSI is getting close to a similarly oversold signal 205 dollars is strong support having been the June low
and with that we've come to the end of the video I'd like to give a huge shout out to anyone who's made it this far I hope you enjoyed the video I'd also like to make it clear that they this is a news and entertainment video not investment advice you should always do your own research and speak to a financial advisor before making any Investments thank you all so much for your support don't forget to like And subscribe for the chance to win up to twenty thousand dollars in Amazon gift
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