Elon Musk buys Tesla shares worth $10 million, warns people of 'short burn of the century'

WION Web Team New Delhi, Delhi, India May 08, 2018, 08.15 AM(IST)

File photo of Elon Musk. Photograph:( Zee News Network )

After being vehemently open about Tesla's recent stocks, the CEO of the company, Elon Musk, has bought around $10 million worth of Tesla's stocks on Tuesday, reports said. 

He has been quite vocal about the fact that people who had been betting against the company on the stock market will soon 'burn' - meaning that he predicts short sellers will rush to exit their position as Tesla’s stock price increases. 

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This has been Musk's biggest purchase since March 2017. Musk, 46, already was Tesla’s largest shareholder, and his stake is now approaching 20 per cent, as per reports.

The purchases were made indirectly via a trust. He now owns 33,665,421 shares. 

The last time Musk purchased shares in March 2017, he bought $25 million in Tesla stock for $262 a share. 

The company has been having a hard time and hasn’t earned an annual profit in its 15-year history and has blazed through more than $1 billion in cash during three of the last four quarters.

Tesla shares closed up 3% to $302.77 yesterday, although the stock is still down 2.8% for the year.