Elon Musk, billionaire and owner of the multinational electric car Tesla, had spoken out, during the month of June, in favor of dismissing at least 10% of his company's employees to automate the cashier, which has been suffering "a drop in revenue" due to the lack of lithium stock in the market, essential for the manufacture of its products. The leak about the layoffs would have happened through a corporate email shared by Reuters. 

According to some analysts, Elon Musk may be manipulating Tesla's stock to fall, even though he owns it. The billionaire would be taking the attitude of purposefully leaking and declaring negative news about the electric car sector in order for the shares to fall and he can buy a part again. With the purchase at the lowest value, it is possible to sell at the top and have an even greater return on your investments. A similar strategy, called by the investment sector “share buy back”, was also applied by the billionaire during the year 2021 for the purchase of cryptocurrencies, mainly dogcoin and Bitcoin.

On his social networks, mainly on Twitter, he manifested his negative thinking about the assets several times and bought / expressed himself in favor of them soon after, so that they could rise after falling and it would be possible to sell them with the best return. Although not stated by the entrepreneur, it is estimated that he was behind BTC's big drops in just one day, which have already reached more than 20%. Now, the asset is being counted with a drop above 75%, at just R$ 100 thousand after having reached its highest value of R$ 380 thousand. 

What makes analysts believe that Tesla owner Elon Musk is practicing “share buy back”? 

At the beginning of June, a corporate email leaked that Elon Musk would have sent to his employees stating that hiring for the institution should be paused for the company to resume productivity in electric cars. 

According to the billionaire, the automotive sector has not been so positive, since there is a decrease in the manufacture of lithium, which makes the price of batteries make cars even more expensive. In Brazil, another factor that has been worsening the situation for the energy transition of cars is the price of the dollar, which rose again to more than R$ 5 even though the Selic rate in double digits by the Ministry of Economy and the Central Bank. 

Tesla: What is the “share buy back” technique and how is it applied in investing and economics? 

This technique is nothing more than the repurchase of a share or asset. A company can sell, during a time of crisis, its shares in order to pay some federal public debt. However, after analyzing that they are in constant growth and the shares tend to appreciate, it is common for the institution to be interested in carrying out the repurchases in order to have majority voice over its decisions. 

However, repurchase interest may arise only when shares are already at their highest value. With this in mind, some billionaires and entrepreneurs tend to use techniques to make stocks fall only for the short term, that is, by reporting lower than expected revenues and layoffs. After they fall, they buy back and announce the good news to show return on growth and appreciation.