Posted January 10, 2018 05:07:51It was a bad year for Tesla Motors.
The company lost over 20% of its value over the course of the year and was down more than half its value in the first three months of the new year.
That was just one of many reasons that it had to give up the plan to build a self-driving car and instead focus on its core electric business.
But in a bid to save its stock, Tesla announced a plan on January 11 to buy back the shares it sold in January, including the stock it had purchased earlier.
The plan, which was announced on January 10 by Chief Executive Elon Musk and chief financial officer Mike Novogratz, will see Tesla sell $US2.4 billion ($2.7 billion) of stock at $US3 a share, the company announced.
It is not yet clear how many shares Tesla will sell, but it is believed that a significant chunk of the proceeds will be used to repay its creditors.
The total value of the transaction is estimated to be about $US1.5 billion ($1.7 million).
Tesla had initially announced plans to sell its remaining shares in 2018, but the plan has now been changed, and it is now worth about $1.9 billion ($US1 billion).
Tesla is expected to receive around $US5.2 billion ($5.5 million) from the transaction, with the rest of the cash going to shareholders.