Tesla shares climbed sharply on Monday after Chief Executive Elon Musk disclosed a rare open-market purchase of nearly $1 billion worth of company stock. The transaction, filed with the U.S. Securities and Exchange Commission (SEC), showed Musk bought approximately 2.57 million Tesla shares on September 13 at prices ranging from $372.37 to $396.54 per share. The purchase marked Musk’s first major open-market acquisition of Tesla stock since 2020.
The filing indicated that the shares were bought through a revocable trust, of which Musk is the sole beneficiary. The acquisition lifted Musk’s total holdings to over 413 million shares, solidifying his position as the company’s largest individual shareholder. Following the disclosure, Tesla stock rose more than 8 percent in early pre-market trading, reversing a portion of its year-to-date losses. The company’s shares had declined around 15 percent so far in 2025 before the purchase was made public. At Friday’s closing price of $372.99, the transaction represented an investment of just under $1 billion.
The move came amid broader attention on Musk’s financial involvement in Tesla after the board of directors recently proposed a new performance-based compensation package. That plan, subject to shareholder approval, is designed to reward Musk if Tesla achieves a series of operational and market capitalization targets over the next decade. The proposal follows the expiration of a previous multi-billion dollar pay agreement approved in 2018.
Musk adds 2.57 million Tesla shares to portfolio
In addition to leading Tesla, Musk also serves as CEO of SpaceX, founder of Neuralink, and owner of social media platform X, formerly Twitter. His business activity across multiple ventures has attracted increased regulatory and investor scrutiny, particularly regarding time allocation and leadership focus. Tesla Chair Robyn Denholm addressed the stock purchase and compensation package in communications with shareholders, affirming that Musk remains committed to advancing Tesla’s growth initiatives.
The company has emphasized its long-term focus on scaling autonomous driving, robotics, and artificial intelligence technology as part of its future product roadmap. Tesla reported mixed financial results in its most recent quarterly earnings release, citing margin pressure from pricing adjustments and rising costs. While vehicle deliveries have remained strong, analysts have noted slowing demand growth in key markets, including China and parts of Europe.
Tesla remains among world’s most valuable companies
The company is also navigating increasing competition from legacy automakers and newer electric vehicle entrants. The stock buy was disclosed in a Form 4 filing, which publicly reports insider transactions by company executives and directors. Such purchases by top executives are closely watched by investors as part of broader assessments of corporate confidence and shareholder alignment. Tesla’s next earnings report is scheduled for later this quarter, with analysts expected to focus on margin recovery, production guidance, and progress in software development.
As of Monday’s market open, Tesla’s market capitalization remained above $1.1 trillion, firmly positioning the electric vehicle manufacturer among the most valuable automotive and technology companies globally. The company continues to rank alongside major industry players in both sectors, reflecting its significant influence on global markets, investor sentiment, and the broader electric mobility landscape. – By Content Syndication Services.