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Tesla shares rose sharply on Monday after a regulatory filing revealed that Chief Executive Officer Elon Musk had purchased nearly $1 billion worth of the electric vehicle maker’s stock last week.
According to the filing, Musk bought 2.57 million shares in open-market transactions on Sept. 12, paying between $372.37 and $396.54 per share. The purchases, conducted through a revocable trust, represent his largest single acquisition by value and mark his first such move since February 2020.
Tesla stock gained about 8% in premarket trading following the disclosure and had already climbed more than 25% over the past three months. Despite this rebound, the shares remain slightly lower for 2025 as a whole after falling by as much as 45% earlier in the year.
Analysts attribute the slump to declining global electric vehicle demand and reduced U.S. incentives under the Trump administration. The company reported a 13% drop in worldwide vehicle deliveries in the first half of the year.
Investor sentiment has also been affected by Musk’s political activity, with some critics arguing that his public focus outside Tesla had weighed on sales. Tesla board chair Robyn Denholm, however, said Musk had returned to being "front and center" at the company.
Earlier this month, Tesla announced plans to seek shareholder approval for a new compensation package for Musk that could be worth up to $975 billion if the company achieves ambitious market value and performance milestones. The proposal, which will be put to a vote in November, sets a long-term target of $8.5 trillion in market capitalization, compared with about $1.3 trillion at Friday’s close.
Musk, who already owns about 13% of Tesla, has linked the company’s next growth phase to autonomous driving, artificial intelligence, and robotics. He is also asking shareholders to approve an investment in his artificial intelligence startup, xAI.
While some analysts see the insider purchase as a strong signal of confidence, consensus forecasts compiled by TipRanks suggest Wall Street expects the stock to decline by about 20% from current levels. Others remain optimistic that Tesla’s expansion into robotics and self-driving technologies could drive longer-term growth.
The transaction strengthens Musk’s position as the world’s richest individual, with a net worth of about $419 billion, according to the Bloomberg Billionaires Index.
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