Tesla chief executive Elon Musk has bought nearly $1 billion worth of the company’s shares, a move that sent the electric carmaker’s stock climbing by six percent on Monday.
A filing with the U.S. Securities and Exchange Commission revealed that Musk acquired 2.57 million shares last Friday at prices ranging between $371 and $396. Already Tesla’s largest shareholder, the billionaire has now further strengthened his stake in the company.
The purchase comes just weeks after Tesla’s board unveiled a new compensation plan for Musk — a package that could potentially top $1 trillion if he delivers on ambitious growth milestones tied to emerging technologies.
Board chair Robyn Denholm has defended the plan, describing Musk as “a generational leader” capable of steering the company for the next decade. The proposal, which shareholders will vote on in November, would grant him as much as 12 percent more of Tesla’s total shares if the company achieves a market capitalization of at least $8.5 trillion by 2035.
The move also comes as Tesla appeals a Delaware court decision that struck down Musk’s previous pay package from 2018, then valued at about $55.8 billion.
At present, Tesla’s market value sits just above $1 trillion — significantly lower than past peaks, weighed down by weak earnings and concerns that Musk’s political associations are affecting sales in major global markets.
Still, his fresh $1 billion share purchase is being read as a strong vote of confidence in Tesla’s future, even as debate continues over the scale of his potential rewards.
