Elon Musk Buys $1 Billion in Tesla Shares, Boosting Market Confidence
Elon Musk has purchased around $1 billion worth of Tesla stock, his first open-market buy since 2020. The move is being read as a sign of renewed confidence in the electric carmaker, sending Tesla shares up more than 6% in early trading on Monday.
Strengthening his stake
Musk already holds about 13% of Tesla but has sought greater control, pressing the board for a 25% stake. His latest purchase of roughly 2.5 million shares, disclosed in a regulatory filing, adds to that effort.
The buy follows recent board proposals, including a new $1 trillion compensation package that could grant Musk up to 12% more of the company if targets are met. Last month, Tesla also awarded him $29 billion in shares as part of an interim deal, after a previous pay plan was struck down in court.
Market and investor signals
Analysts say the stock purchase helps reassure investors. “Markets like it when leaders buy into their own companies — it signals confidence,” said Danni Hewson of AJ Bell. But she also suggested Musk may have had personal motivations, pointing to his rivalry with Oracle co-founder Larry Ellison, who briefly became the world’s richest man.
Challenges ahead
Despite Musk’s bold bet, Tesla faces headwinds. Sales have slowed as EV competition intensifies and US tax breaks for electric cars expire. At the same time, Musk’s political activity — from his support for Donald Trump to appearances at far-right rallies in Europe — has drawn criticism and clouded Tesla’s brand.
Over the weekend, the UK government accused Musk of using “dangerous and inflammatory language” at a London rally, where he urged crowds to “fight back or die.”
The bigger picture
Tesla’s board insists its compensation strategy is designed to keep Musk focused on the company’s future — particularly robotaxis, automation, and AI. Board chair Robyn Denholm said Musk remains “back, front and centre” at Tesla, calling him “the right CEO for this transformative period.”
