Tesla stock buyback could come in the next year, as Elon Musk teases investor bonanza

Edward Jones analyst Jeff Windau said that the electric-vehicle maker could buy back shares in the next year.

He told Insider that the board has the power to make a decision on the stock buy back.

The pending lawsuit against Musk and his company over his pay package, as well as the recent sale of stock in the company, are some of the things that are included.

Windau said it would be for them to look at the time from a discounted price perspective and when they wanted to take care of some of the dilution.

As shares have fallen, investors have been looking for signs of a share buy back. Last month, Musk told analysts on the company's third-quarter earnings call that he was working on a process to buy back as much as $10 billion of the company's stock.

He said he sees a path for the company to be worth more than Apple and Saudi Aramco combined.

The Federal Reserve's rate hikes have led to a 50% plunge in the stock of the electric car maker.

Musk disclosed the sale of nearly $4 billion of the company's stock in order to finance his acquisition of the social networking site. The sale of billions of dollars inTesla stock last year and earlier this year preceded it.

Windau doesn't believe there is a specific price threshold for the stock to fall to.

The shareholder lawsuit over Musk's pay is still a big deal. He said in the trial that he upheld his duty to increase the value of the company. Musk and the automaker were accused of breaching their fiduciary duties by giving a package that was beyond the bounds of reasonable judgement.

Musk doesn't get a salary, but he does get a 10 year grant of stock options which are vested when the company hits certain targets. It's the largest compensation package in history with a value of $50 billion.

Musk admitted at the trial that he doesn't always seek the board's approval for public statements. He acknowledges that the board has the final say on a buy back.

For now, the lawsuit and Musk's impulsiveness could be factors in the decision-making process, but represent just another element to the story.