Elon Musk just bought another +ACQ-25 million in Tesla stock

+ADw-p+AD4APA-a href+AD0AIg-https://www.cnbc.com/elon-musk/+ACIAPg-Elon Musk+ADw-/a+AD4 just made another big bet on himself.+ADw-/p+AD4

+ADw-p+AD4-Over the last two days, +ADw-a class+AD0AIg-inline+AF8-asset+ACI href+AD0AIg-http://ir.tesla.com/secfiling.cfm?filingid+AD0-1494730-18-5+ACY-amp+ADs-CIK+AD0-1318605+ACI title+AD0AIg-http://ir.tesla.com/secfiling.cfm?filingid+AD0-1494730-18-5+ACY-amp+ADs-CIK+AD0-1318605+ACIAPg-Musk has bought 72,500 shares+ADw-/a+AD4 of +ADw-a class+AD0AIg-inline+AF8-quotes+ACI href+AD0AIg-https://www.cnbc.com/quotes/?symbol+AD0-TSLA+ACIAPg-Tesla+ADw-/a+AD4, when shares were trading at +ACQ-342 to +ACQ-347, according to an SEC filing. The total purchase is worth about +ACQ-24.9 million.+ADw-/p+AD4
+ADw-p+AD4-Tesla has an abundance of skeptics, but Musk has continued to fork over cash for shares in the electric-car maker. Back in early May, Musk bought 33,000 Tesla shares, then worth about +ACQ-10 million. Shares were trading just below +ACQ-300 at that point.+ADw-/p+AD4

+ADw-p+AD4-Musk is Tesla’s largest shareholder. He now owns about 33.7 million shares of Tesla, a roughly 19 percent slice of all outstanding shares.+ADw-/p+AD4
+ADw-p+AD4-Tesla declined to comment beyond what was in the filing.+ADw-/p+AD4
+ADw-p+AD4-Musk made his purchases shortly after Tesla said it will +ADw-a href+AD0AIg-https://www.cnbc.com/2018/06/12/tesla-to-cut-about-9-percent-of-jobs-across-company-report.html+ACIAPg-cut about 9 percent of its workforce of 46,000 employees+ADw-/a+AD4, in salaried roles outside vehicle production. The company is trying to improve efficiency and profitability as it continues the frequently delayed and often struggling production ramp of its Model 3 sedan.+ADw-/p+AD4
+ADw-p+AD4-The company is still burning through billions in cash and has faced challenges on several fronts, including labor disputes, executive departures and investigations into the role its Autopilot driver-assistance system has played in some high-profile crashes.+ADw-/p+AD4
+ADw-p+AD4-Despite Musk’s apparent confidence, Tesla is the most shorted U.S. equity, with a +ACQ-12.82 billion short exposure, according to financial analytics firm S3 Partners. That’s 22 percent of all shares outstanding.+ADw-/p+AD4
+ADw-p+AD4-For comparison, +ADw-a class+AD0AIg-inline+AF8-quotes+ACI href+AD0AIg-https://www.cnbc.com/quotes/?symbol+AD0-AAPL+ACIAPg-Apple+ADw-/a+AD4 is the second most shorted U.S. stock, +ADw-a class+AD0AIg-inline+AF8-quotes+ACI href+AD0AIg-https://www.cnbc.com/quotes/?symbol+AD0-AMZN+ACIAPg-Amazon+ADw-/a+AD4 is third, and +ADw-a class+AD0AIg-inline+AF8-quotes+ACI href+AD0AIg-https://www.cnbc.com/quotes/?symbol+AD0-NFLX+ACIAPg-Netflix+ADw-/a+AD4 fourth.+ADw-/p+AD4
+ADw-p+AD4-But since June 1st, Tesla shares have risen 18 percent and short sellers have lost about +ACQ-2 billion, S3 said.+ADw-/p+AD4
+ADw-p+AD4-Despite this, short sellers such as Jim Chanos of Kynikos Associates are still convinced Tesla has some fundamental problems achieving profitability.+ADw-/p+AD4
+ADw-p+AD4AIg-The basic problem is that he is making the cars at not enough of a gross margin to make money,+ACI he said on CNBC’s +ACI-Closing Bell+ACI on Wednesday. He added that Tesla may have an even tougher time making money on its cars as more competitors begin rolling out.+ADw-/p+AD4
+ADw-p+AD4-Tesla expects Model 3 margins to break even in the second quarter, and be positive in the third and fourth quarters. The company is still targeting a long-term gross margin of 25 percent on the car.+ADw-/p+AD4-

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