Larry Ellision, the US software giant and database product supplier Oracle co-founder, was revealed in December that it had purchased $1 billion worth of Tesla stock. Now these stocks have fallen to only $580 million.
According to CNBC’s May 23 report, since Ellison disclosed that it had purchased 3 million shares of Tesla at the end of December 2018, the electric car manufacturer’s stock has fallen 42% to become the S&P 500 in 2019. The worst performing stock in the index. Ellison has 1.7% of Tesla stock and is the company’s second largest individual shareholder, second only to Tesla CEO Elon Musk.
The above report commented that Tesla’s share price plummeted, related to factors such as the company’s closing of stores and layoffs, and the conflict between Musk and US regulators. As of the close of May 23, Ellison’s $1 billion Tesla stock has fallen to $580 million.
Ellison’s investment in Tesla is not just about economic gains. At the end of 2018, Tesla appointed Ellison and former Kellogg executive Kathleen Wilson-Thompson to join the board as part of a settlement agreement with the US Securities and Exchange Commission (SEC). Previously, Musk wrote on Twitter that he “guaranteeed” the funds and allowed Tesla to be privatized at $420 per share. The US Securities and Exchange Commission sued Musk for alleged fraud.
In a statement to appoint a new board member on December 28, 2018, Tesla described Ellison as “a believer in Tesla’s mission” and mentioned that he purchased 3 million shares of Tesla in early 2018.
Ellison also mentioned in October 2018 that he is optimistic about Tesla. At the time, he said at the financial meeting that Tesla was his second largest investment. Although no analyst asked this question, he felt it necessary to mention it.
“I and Elon Musk are very close friends, I am a big investor of Tesla.” Ellison said at the time, “So Tesla is doing well, I think Tesla has many advantages. You Know what the US’s most popular cars have been in the past three months? By the revenue, Tesla Model 3 sold the most, forgetting Ford, GM, they are too big, not even more than Honda and Toyota.”
The CNBC report also mentioned that Ellison may have as much interest in Musk as there are Tesla cars he made.
“These guys are landing the rocket.” Ellison said at the analyst meeting in October last year, “He used a drone to land the rocket at sea. You actually said that he didn’t know what he was doing? Who else can let The rocket landed, have you done this? Who do you think you are?”
Tesla’s share price was about $315 at the time. As of May 23, Tesla’s share price was $195.49.
An Oracle spokesman declined to comment.
Ellison founded Oracle in 1977, and the company now has a market capitalization of more than $57 billion. Ellison ranks seventh in the world in the Bloomberg Billionaires ranking because of its Oracle shares.
In recent years, Oracle has been poorly managed and its cloud business has been weak. Global layoffs have long been a clue. Previously, foreign media reported that in order to transform into a cloud business, Oracle may lay off about 14,000 people worldwide.
The industry believes that one of the reasons for Oracle’s large-scale layoffs may be that the company’s transition to the cloud business is too slow.
Oracle spokesman Deborah Hellinger previously issued a statement saying: “Due to the development of our cloud business, we will continue to balance our resources and reorganize our development team to ensure we have the right people to provide the best cloud products for our global customers. “