Elon Musk has purchased $1 billion worth of Tesla shares, signaling his commitment to the electric vehicle maker and sparking a surge in premarket trading. The rare move comes after a turbulent year for Tesla, marked by political backlash, falling sales, and heightened competition.
Musk’s Rare $1 Billion Buy
According to a regulatory filing released Monday, Musk bought $1 billion in Tesla (TSLA) shares on Friday, adding about 2.6 million shares to his holdings. While the purchase increases his stake by less than 1%, investors welcomed the move as a sign of loyalty to Tesla.
Shares of Tesla jumped 8% in premarket trading following the disclosure. Analysts described the purchase as a “huge vote of confidence,” particularly after months of uncertainty surrounding Musk’s focus on his many other ventures.
A Volatile Year for Tesla
Tesla’s stock has experienced sharp swings in recent months. After nearly doubling following the U.S. presidential election, shares fell dramatically by spring, erasing those gains. Political backlash, declining sales, and intensifying competition from Chinese automaker BYD added to the company’s struggles.
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The looming expiration of a $7,500 federal EV tax credit could further pressure Tesla sales later this year, even as short-term demand rises ahead of the deadline.
Musk’s Growing Influence and Pay Package
The stock purchase comes just a week after Tesla proposed a new pay package for Musk that could be worth $1 trillion if the company reaches ambitious sales and valuation milestones. The plan ties Musk’s compensation entirely to performance, requiring Tesla’s market value to climb from $1.3 trillion to $2 trillion.
Currently, Musk owns about 413 million Tesla shares—roughly 12.8% of the company. He has previously stated he wants to secure at least 25% voting control, warning he may shift some of his AI and robotics projects to his company xAI if that goal is not met.
Despite recent setbacks, Tesla’s long-term prospects remain tied to its self-driving technology and plans to launch a fleet of robotaxis. If Monday’s premarket rally holds, Tesla shares will return to positive territory for the year, though they remain behind broader market gains.
For now, Musk’s billion-dollar bet has reassured investors that he intends to remain deeply involved in Tesla’s future—even as he juggles leadership roles at SpaceX, xAI, and social platform X.
