Elon Musk Says Tesla Share Buyback Could Depend on Severity of Any Recession

In October, Mr. Musk said Tesla could pursue a share buyback of $5 billion to $10 billion and said a meaningful buyback was likely. The company has discussed such a share repurchase at the board level, he said, but hasn’t signed off on it.

“The board is very open to doing a buyback,” Mr. Musk said in a live conversation broadcast on Twitter, though he added “it wouldn’t be smart to do a buyback and then discover the recession is worse than 2009.”

Some

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TSLA -8.88%

retail investors have expressed frustration with the performance of the stock, down more than 60% this year, and called for a share repurchase.

Mr. Musk also said he would remain focused on

Tesla

despite his acquisition of Twitter Inc. in October in a deal valued at $44 billion. Some investors expressed concern Mr. Musk has been too focused on the social-media company of late to the detriment of Tesla.

The Tesla boss also said the car company would continue to invest as part of its growth plans. “We are applying capital at pretty close to the fastest rate we can spend capital and not be wasteful,” he said.

Photos: How Elon Musk Made His Fortune

The company, he said, is “close to picking a location for another Gigafactory,” without providing details. Mr. Musk has said Tesla might open 10 to 12 new factories to help boost Tesla output to 20 million vehicles at the end of the decade.

He said Tesla also planned to start refining battery-grade lithium at a facility in Corpus Christi, Texas, in about two years to help the electric-vehicle maker satisfy its need for material needed for power cells.

Amid investor concerns about Tesla—the company’s stock fell 8.88% on Thursday—Mr. Musk said “the actual execution of the company is outstanding.”

Write to Robert Wall at robert.wall@wsj.com