Tesla Stock Price Jumps as Musk Buys $1B in Shares

Tesla stock price climbed in premarket trading after CEO Elon Musk revealed a $1 billion purchase of company shares, his first open-market buy in more than five years. The move was seen as a strong vote of confidence in Tesla’s future, sparking renewed optimism among investors.

Musk’s Rare $1 Billion Purchase

Elon Musk disclosed that he bought more than 2.5 million Tesla shares, worth around $1 billion, in a regulatory filing released Monday. The purchase, which marks his first significant open-market buy in years, immediately lifted Tesla stock price by 6% in premarket trading.

Analysts say the move reassured investors who have been questioning Musk’s focus on Tesla amid his leadership roles at SpaceX, xAI, and social platform X. The sizable buy sent a clear message that Musk intends to remain deeply invested in the automaker’s future.

Wall Street Watches Closely

Tesla’s gain came alongside broader market strength, with U.S. stock futures higher after all three major indexes finished last week with gains. The Nasdaq Composite closed at a record high, driven by optimism that the Federal Reserve will cut interest rates during its meeting this week.

Read More: Elon Musk Buys $1B in Tesla Stock, Boosting Investor Confidence

Investors are also keeping a close eye on Fed Chair Jerome Powell’s upcoming comments for signals on future policy moves, which could further impact tech and growth stocks like Tesla.

What It Means for Tesla Investors

The rise in Tesla stock price underscores renewed confidence in the company, despite challenges such as intensifying competition in the EV market and the looming expiration of federal tax credits. Musk’s direct investment, analysts argue, is not only symbolic but also a powerful indicator of his long-term vision for Tesla.

While Tesla’s future will depend on execution in areas like autonomous driving and global expansion, Musk’s billion-dollar bet has reminded Wall Street of his enduring commitment to the company.