Elon Musk has purchased about $1 billion worth of Tesla shares, signalling renewed confidence in the electric car company as it faces mounting challenges.
The move pushed Tesla’s stock up by more than 6% in early trading on Monday, marking a rare surge for a company that has struggled to gain momentum this year.
Musk, who already owned around 13% of Tesla, acquired roughly 2.5 million shares in transactions completed on Friday, details of which were disclosed to regulators on Monday
It was his first open market purchase of Tesla stock since 2020, and analysts say it reflects a push to strengthen his stake in the firm.
The billionaire has been pressing for greater control of Tesla, even demanding a 25% ownership stake at one point and warning he could step away from the company if denied.
His ambitions are closely tied to Tesla’s direction, particularly his push into robotaxis, automation, and artificial intelligence.
The company’s board recently laid out an ambitious compensation plan for Musk, valued at about $1 trillion, that would award him up to 12% of Tesla’s shares if performance targets are reached. Last month, the board also approved a $29 billion interim award following the collapse of a 2018 pay deal in court.
Market analysts say Musk’s stock purchase is both strategic and symbolic.
Danni Hewson, head of financial analysis at AJ Bell, explained that “markets like it” when company leaders buy into their own businesses, as it indicates optimism about future performance. She added, however, that motivations could be more complex.
“An inventive and ungenerous interpretation of Musk's actions is he saw the news about Larry Ellison becoming the world's richest man and decided to juice Tesla stock a bit to regain the title,” she said. “Stranger things have happened.”
The development comes as Tesla navigates significant headwinds. The company is grappling with slowing sales amid growing competition and the end of US tax breaks for electric cars.
Its brand image has also been affected by Musk’s political activities, including his high-profile support for Donald Trump during the 2024 election, followed by a dramatic fallout earlier this year.
Musk’s political stance has spilled across borders.
Over the weekend, he addressed a London rally organised by far-right activist Tommy Robinson, where he warned the crowd that “violence was coming” and urged them to “fight back or die.” The comments drew a sharp rebuke from the British government, which accused him of using “dangerous and inflammatory language.”
Tesla’s board has linked its compensation packages partly to assurances that Musk would gradually reduce his political involvement. Asked about this last week, board chair Robyn Denholm maintained that Musk’s personal choices were his own but emphasised his commitment to Tesla.
“He is back, front and centre at Tesla,” she said, describing him as “the right CEO for Tesla over this transformative period of time.”
