Major Purchase Signals Confidence
Tesla CEO Elon Musk disclosed the purchase of 2.57 million Tesla shares worth about $1 billion, according to a regulatory filing released Monday. The shares were bought Friday at prices ranging from $372.37 to $396.54 each. This marks Musk’s first open-market purchase since 2020 and comes as Tesla pivots toward artificial intelligence, robotaxis, and robotics amid slowing demand in the EV market.
Push for Greater Control
Musk has repeatedly sought more influence over Tesla, saying he wants at least 25% voting power to continue advancing AI and robotics inside the company. As of December, he controlled roughly 13% of Tesla’s shares. The company’s board has responded with a proposed $1 trillion performance-based pay package, which would be the largest compensation deal in corporate history if approved by shareholders.
Market Reaction
Shares of Tesla climbed more than 5% Monday following news of Musk’s purchase, trading around $409.68 in early afternoon. Analysts saw the move as a bullish signal. William Blair’s Jed Dorsheimer said in a note that Musk’s purchase reflects “a clear signal of confidence” and adds to momentum from growing delivery expectations and robotaxi plans. Still, the firm maintained a Market Perform rating.
Compensation Plan Under Review
Musk’s prior $56 billion compensation package from 2018 was struck down earlier this year by a Delaware judge over governance concerns but is currently under appeal. Tesla has already issued Musk a $29 billion “good faith” award under that plan, though the payment remains tied up in litigation. The new $1 trillion package will face a shareholder vote, with the board expressing full support and analysts expecting strong investor backing.