Musk Deepens His Stake
Tesla shares jumped more than 8% in premarket trading after CEO Elon Musk revealed a fresh $1 billion stock purchase. The move, disclosed in a filing with the Securities and Exchange Commission, underscores Musk’s growing personal commitment to the electric-car maker’s future.
The purchase amounts to 2.57 million Tesla shares, valued at just over $1.02 billion based on Friday’s closing price of $395.94. With the new acquisition, Musk now controls roughly 509 million shares directly and indirectly. This represents about 15.8% of Tesla’s outstanding stock, tightening his connection to the company’s success.
Investor Confidence Boosted
Market watchers viewed the purchase as a clear vote of confidence. Investors responded quickly, pushing Tesla stock higher in early trading. The rally comes at a time when Tesla has underperformed broader markets. Shares are down around 2% in 2025, compared with a 12% gain for the S&P 500 over the same period.
Analysts noted that Musk’s personal investment sends a strong signal. It ties his fortunes more closely to Tesla’s growth while reassuring shareholders amid market volatility.
Billion-Dollar Bet Follows Major Pay Package
The timing of the move is also notable. It follows Tesla’s board approval of a $29 billion stock award for Musk and a proposed long-term pay package that could reach $1 trillion if Tesla grows its market capitalization by $7.5 trillion. The billionaire entrepreneur is effectively doubling down on Tesla’s long-term value creation.
This latest acquisition also marks Musk’s first open-market stock purchase since February 2020, according to Dow Jones Market Data.
Challenges and Controversy
2025 has been a turbulent year for both Tesla and Musk. The company has faced intensifying competition from Chinese EV manufacturers, as well as protests over Musk’s political ties to former President Donald Trump and his involvement in the Department of Government Efficiency.
Despite these headwinds, Musk continues to project optimism about Tesla’s trajectory, particularly in autonomous driving and AI integration.
Analyst Reactions
Wedbush Securities analyst Dan Ives, a long-time Tesla supporter, described Musk as a “wartime CEO” in a note to clients. He argued that the company is entering one of the most critical phases in its history, driven by breakthroughs in robotaxis and artificial intelligence.
“We believe Tesla and Musk are heading into a very important chapter of their growth story as the AI revolution takes hold,” Ives wrote. He suggested that AI alone could add $1 trillion in valuation over the coming years.
While Tesla’s stock has lagged so far this year, Musk’s billion-dollar buy has reignited investor enthusiasm. Supporters see the move as a powerful signal of resilience and ambition, even as the company navigates regulatory challenges, political scrutiny, and intensifying global competition.
For now, markets appear convinced that Musk’s bold bet is more than symbolic it is a tangible show of confidence in Tesla’s future.
Resouces:
https://www.marketwatch.com/
https://knowledgenexuses.com/
