Tesla shares rose as much as 6% in early trading on Monday after CEO Elon Musk disclosed he had purchased about $1 billion worth of the electric carmaker’s stock, his first open-market buy in more than four years.
Musk acquired 2.57 million shares on Friday, paying between $372.37 and $396.54 per share, according to a regulatory filing. The move marks the billionaire’s first stock purchase since early 2020 and comes as Tesla seeks to advance its shift toward artificial intelligence and robotics while grappling with slowing vehicle sales and thinner margins.
The purchase also reinforces Musk’s push for greater control at Tesla. Just over a week ago, the company’s board proposed a $1 trillion compensation plan aimed at addressing Musk’s demands and setting ambitious operational targets. Musk has said he wants to hold at least 25% voting power to ensure Tesla is at the center of his AI ambitions, otherwise he would prefer to pursue such projects outside the company.
As of December, Musk held about a 13% stake in Tesla, LSEG data shows.
“This is the clearest signal yet that he’s slamming the accelerator on being all in again,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. “The Tesla-Musk narrative looks firmly back on track after a shaky start to the year.”
Tesla stock has fallen about 2% year-to-date, making it one of the weakest performers among the so-called “Magnificent 7” group of megacap tech stocks. The company has faced intensifying EV competition, rising costs and softer demand that have pressured margins in recent quarters.
Tesla chair Robyn Denholm last week rejected concerns that Musk’s political activity was hurting sales, stressing that the CEO was now back “front and center” at the company following several months of focus on White House initiatives.
