Tesla CEO Elon Musk has purchased about $1 billion (£735 million) worth of Tesla shares, his first open-market buy since 2020, in a move that sent the company’s stock up more than 6% in early trading on Monday.
Musk acquired roughly 2.5 million shares on Friday, increasing his stake beyond the 13% he already controlled. The purchase comes as Tesla faces falling sales, growing competition in the electric vehicle market, and the loss of US tax incentives for EVs.
The board has proposed a new $1 trillion compensation package that could boost Musk’s ownership by up to 12%, following a $29 billion “interim” award unveiled last month after a 2018 pay deal was struck down in court. Musk has previously demanded a 25% stake, warning he could walk away if denied greater control.
Analysts said the stock buy signals confidence, though some saw other motives. “Markets usually cheer when leaders invest in their own companies, but an inventive and ungenerous interpretation is that Musk saw Larry Ellison become the world’s richest man and decided to juice Tesla stock a bit,” said Danni Hewson of AJ Bell.
Musk’s political activism has drawn controversy and at times overshadowed Tesla’s brand. After backing Donald Trump in the 2024 US election and later breaking with him, Musk has aligned with far-right figures in Europe. Over the weekend, the British government accused him of “dangerous and inflammatory language” following remarks at a London rally organized by far-right activist Tommy Robinson.
Tesla’s board has defended Musk, saying the new pay plan is aimed at keeping his focus on the company. Chair Robyn Denholm described him as “the right CEO for Tesla over this transformative period of time,” while stressing his politics were “up to him.”
