Elon Musk buys Tesla shares worth $1bn, boosting stock by 6% amid plans for a $1tn pay package and upcoming shareholder vote
Elon Musk buys Tesla shares worth over $1 billion, reigniting investor confidence and pushing the electric carmaker’s stock price up by six percent on Monday.
Also read: Elon Musk reveals tesla robotaxi set for 2027, debuts “Robovan” and humanoid robots
According to a regulatory filing with the US Securities and Exchange Commission, Musk acquired 2.57 million Tesla shares on Friday, with purchase prices ranging from $371 to $396 per share.
The move comes amid growing scrutiny and anticipation around Musk’s proposed new pay package, which could ultimately grant him up to 12 percent of Tesla’s total shares if long-term performance milestones are achieved.
The buy-in underscores Musk’s commitment to the company at a critical juncture, as Tesla prepares for a shareholder vote in November on a compensation plan potentially worth $1 trillion—contingent on Tesla reaching a market valuation of $8.5 trillion by 2035.
Currently, Tesla’s market cap sits just above $1 trillion, a figure that, while formidable, is well below the lofty valuation required for the full award.
The company’s valuation had recently dipped due to soft quarterly earnings and controversial political associations made by Musk on social platform X (formerly Twitter), which have affected Tesla’s brand perception in some key markets.
Despite those headwinds, Tesla Chair Robyn Denholm has come out strongly in support of Musk, calling him “a generational leader” and defending the pay package across various media platforms.
“There aren’t any other people out there like Elon who can actually lead the company over the next decade,” Denholm said in a recent interview with Bloomberg TV.
Tesla is also currently challenging a Delaware court ruling that invalidated Musk’s earlier 2018 compensation deal worth $55.8 billion, citing procedural issues and concerns about board independence.
Elon Musk buying Tesla shares has been seen by analysts as a power move—both financially and symbolically—intended to demonstrate confidence in Tesla’s long-term vision, including its bets on autonomous driving, energy storage, and robotics.
Also read: ‘After crossing $1,000 mark’ Teslar board members are selling shares amidst historic stock rally
With shareholder sentiment in flux, the $1 billion share acquisition may shift momentum in favour of the upcoming vote, particularly among institutional investors looking for leadership stability and market direction.
Source: Read more at thisdaylive.com
