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Leo, who owns roughly $5 billion worth of Tesla stock, is a well-known advocate of stock buybacks and has been steadily increasing his Tesla holdings. He openly states his intention to hold these shares until at least 2030 or even 2040, signaling his confident, long-term perspective.
His sizable investment and public stance make it almost certain that Elon Musk, Tesla's CEO, will eventually take notice of this bold proposal. Given Leo's position and influence, his advocacy could sway Tesla's strategic decisions regarding capital allocation.
The Rationale Behind a Tesla Stock Buyback
Tesla, as a company, has experienced considerable growth, especially in terms of earnings and market valuation. A buyback, especially of the scale Leo suggests, could have multiple benefits: