Austin, Texas – Billionaire entrepreneur and Tesla CEO Elon Musk has purchased approximately USD 1 billion worth of Tesla shares, signaling renewed confidence in the electric vehicle maker. Following the news, Tesla shares, which have struggled to gain momentum this year, surged over 6% in early trading on Monday, according to BBC reports.
Tesla’s board recently unveiled a compensation plan valued at around USD 1 trillion, potentially granting Musk up to 12% of the company’s shares if certain performance targets are met. Additionally, the board awarded him USD 29 billion in shares last month as an “interim” award, following a larger pay package agreed in 2018 that was later overturned in court.
These proposals came after negotiations with Musk, during which he reportedly sought a 25% stake in the company and at times threatened to resign over the issue. Musk’s recent acquisition of roughly 2.5 million shares, completed on Friday and disclosed in a regulatory filing on Monday, marks his first open-market purchases since 2020 and underscores his ongoing commitment to Tesla.
The CEO has continued to emphasize the company’s long-term potential, particularly in areas like robotaxis and automation, to reassure investors amid a challenging year.
