Tesla (TSLA) stock surged over 8% in premarket trading on Monday after a regulatory filing revealed that CEO Elon Musk had acquired nearly $1 billion worth of Tesla shares. The purchase signals Musk’s determination to strengthen his control over the electric-vehicle giant as it pivots toward robotaxis, artificial intelligence, and robotics.
Elon Musk Boosts Stake in Tesla
According to the filing, Musk purchased 2.57 million Tesla shares in open-market transactions on Friday, paying between $372.37 and $396.54 per share. As of December, Musk held roughly a 13% stake in the company, based on LSEG data.
The stock move follows a 7% rally on Friday, marking the third consecutive session of gains if momentum holds. Despite these gains, Tesla shares remain down about 2% year-to-date, reflecting challenges in EV demand and rising competition.
Push for Greater Control
Musk has repeatedly emphasized his need for 25% voting power at Tesla to influence its direction. He has even threatened to develop AI and robotics products outside of Tesla if his demand is not met.
Earlier this month, Tesla’s board proposed a $1 trillion compensation package for Musk, a clear signal of confidence in his leadership despite market headwinds.
Board Support Amid Investor Concerns
Board chair Robyn Denholm defended Musk’s role, dismissing concerns that his political activity had negatively impacted Tesla’s sales. Denholm stressed that Musk is once again “front and center” at Tesla following months of political involvement and meetings at the White House.
Musk’s recent political clashes, including tensions with President Donald Trump, have worried some investors about potential distractions and risks to Tesla’s brand. However, with this $1 billion share purchase, Musk is doubling down on his commitment to the company’s future.
Conclusion
Elon Musk’s $1 billion Tesla stock purchase has boosted investor confidence, driving the company’s shares higher. As Tesla works to expand beyond EVs into AI, robotics, and autonomous driving, Musk’s strengthened stake could shape the company’s evolution into a global tech leader.
