Elon Musk Buys $1 Billion Worth of Tesla Shares in Bold Show of Support
Tesla CEO Elon Musk has purchased approximately $1 billion (£735 million) in company stock, a move widely seen as a signal of renewed confidence in the electric vehicle manufacturer.
Following the announcement, Tesla’s stock—which has faced headwinds throughout the year—rose over 6% during early trading on Monday.
Musk already owned around 13% of Tesla, but he has consistently aimed to tighten his grip on the company. He’s been steering Tesla’s focus toward advanced technologies, including robotaxis, automation, and artificial intelligence.
Recently, Tesla’s board proposed a massive compensation package potentially worth $1 trillion. If approved and certain performance milestones are met, it could award Musk up to 12% of Tesla’s total shares.
In addition, the board announced last month that Musk would be granted $29 billion worth of shares as an “interim” reward. This came after a previous 2018 pay deal was invalidated in court.
These offers emerged after tense negotiations, during which Musk pushed for a 25% ownership stake—at times even threatening to leave the company if his demands weren’t met.
Danni Hewson, financial analyst at AJ Bell, suggested Musk’s share purchase likely aims to rebuild his ownership stake. She noted that markets typically respond well when CEOs invest in their own companies, as it’s viewed as a strong indicator of optimism about the firm’s outlook.
Still, she acknowledged there may be other factors at play. “A more cynical take is that Musk noticed Larry Ellison overtaking him as the world’s richest man and wanted to give Tesla’s stock a boost to reclaim the title,” she said. “Stranger things have certainly happened.”
Musk acquired roughly 2.5 million shares last Friday, with the transaction disclosed in regulatory filings on Monday. This marks his first direct stock purchase on the open market since 2020—an indication that he remains financially and strategically invested in the company, even as Tesla navigates a challenging year.
While Musk continues to highlight Tesla’s long-term vision centered on self-driving technology and automation, the company is currently dealing with slowing sales, growing competition, and the phase-out of U.S. tax incentives for electric vehicles.
Adding to its challenges, Tesla’s public image has also suffered due to Musk’s increasingly polarizing political activity. He was an outspoken supporter of Donald Trump during the 2024 U.S. election, though their relationship soured dramatically earlier this year. Musk has also publicly backed far-right movements in both the UK and Germany, further drawing attention and controversy.
