This buy marks Musk’s first open-market purchase of Tesla shares since early 2020, instantly signaling renewed confidence from the billionaire in his company’s future.
The timing is crucial. Tesla is not only battling slowing electric vehicle sales but also pushing hard to transform itself into a global leader in AI and robotics. Musk’s sudden billion-dollar bet has now fueled speculation about Tesla’s next big leap.
Investors see this as more than a routine stock purchase. It’s a bold message from Musk that he believes Tesla’s toughest days may be temporary and its long-term future brighter than ever.
The move also reinforces Musk s push for greater control over Tesla, and comes just over a week after the company s board proposed a $1 trillion compensation plan for Musk, addressing Musk s demands and setting out lofty financial and operational targets.
Musk had purchased 2.57 million shares on Friday, paying between $372.37 and $396.54 per share, according to a regulatory filing on Monday.
The move is "the clearest signal yet that (Musk is) slamming the accelerator on being all in again ... the Tesla-Musk narrative looks firmly back on track after a shaky start to the year," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.
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Musk has consistently demanded a bigger stake and increased voting power at Tesla, having said previously that he would prefer to build AI and robotics products outside of Tesla if he cannot get 25% voting power.
As of December, Musk held a roughly 13% stake, according to LSEG data.
While Tesla shares were rising for a third straight session on Monday, the stock has been among the worst performers in the "Magnificent 7" group of tech megacap stocks, having lost 2% of its value year-to-date, through last close.
Tesla’s stock underperforms its mega-cap peers
Tesla s recent quarterly results showed continued margin pressures at the company, amid softening EV demand, increased costs and competition.
Still, Tesla board chair Robyn Denholm on Friday dismissed concerns that Musk s political activity had hurt sales, also adding that Musk was back "front and center" at the company after several months at the White House.
Elon Musk’s surprise $1 billion Tesla stock purchase is more than a financial transaction — it’s a psychological boost for investors. At a time when Tesla faces slowing car demand and mounting competition, Musk’s decision to double down signals faith in Tesla’s ability to pivot towards AI and robotics.
For Wall Street, the move suggests Musk envisions Tesla less as a car company and more as a tech giant of the future. The immediate share price surge shows investors are ready to follow his lead, but whether this gamble pays off will depend on Tesla’s ability to deliver real breakthroughs beyond electric vehicles.
