Elon Musk spent $1 billion buying Tesla stock last Friday. This was his first time buying shares on the open market in more than five years. The public filing shows he picked up around 2.57 million shares. Prices ranged from about $372 to $397 each. He made these buys through a revocable trust, with all deals done in a single day.
Because of this news, Tesla’s stock went up over 8% in premarket trading Monday. Shares hit about $428 before regular hours started. If the gains last during the day, Tesla stock will be positive for the year after dropping early in 2025.
This is Musk’s biggest direct purchase ever. He usually gets more shares through stock options, not by spending cash. Last time he bought in the open market was February 2020, when he bought about 200,000 shares for around $10 million. That makes this deal much bigger by comparison.
Many investors and analysts saw this move as a strong vote of confidence. Dan Ives at Wedbush said, “this is a significant indicator of confidence for Tesla supporters and illustrates Musk’s determination to invest in Tesla’s AI initiatives.” Tesla shares have been under pressure lately. The main reasons: weaker sales, Musk’s political activities, and a drop in electric vehicle incentives after rules changed under President Trump.
Earlier this month, Tesla’s board proposed a new pay package for Musk. If approved, it could be worth up to $1 trillion, but only if Musk and Tesla hit steep goals. The plan could give Musk as much as 12% of the company in several steps. Milestones include doubling Tesla’s value to $2 trillion for the first piece of the plan. The biggest payout comes if Tesla’s market value reaches $8.5 trillion. This would make Musk the world’s first trillionaire, but only if all targets get met.
Tesla’s annual shareholder meeting is scheduled for November 6, and investors will decide on the pay package at that time.
However, Tesla still faces challenges. In the first half of 2025, global deliveries fell 13%. At the same time, Musk has said robotaxis and humanoid robots will be the future of Tesla, but warns there’s tough quarters ahead with U.S. incentives gone.
Buying $1 billion in shares with his own money means Musk is betting on Tesla’s future. He put more of his own wealth on the line, which many people saw as proof that he plans to stand by the company.
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