Elon Musk, CEO of SpaceX and Tesla, made headlines recently with a significant stock acquisition that has reinvigorated investor confidence. On a Monday morning, Tesla shares surged by 8% in premarket trading following Musk’s disclosure of purchasing 2.57 million shares in the open market, his first purchase since February 2020. The acquisition, which amounts to approximately $1 billion, represents Musk’s largest buy by value to date. Prior to this move, he had last bought around 200,000 shares valued at approximately $10 million.
Musk’s purchase comes at a time when Tesla shares had seen a recent rally, climbing over 25% in the past three months, but closed slightly lower for the 2025 forecast. His stake in the company previously stood at around 13%. Despite this surge, shares have faced challenges this year, partially due to declining sales linked to Musk’s political activities and changes in government incentives for electric vehicles.
Analysts remain divided on the stock’s future, with consensus price targets indicating a potential decline of about 20%. However, some experts express optimism regarding Tesla’s long-term growth prospects, particularly if the company can pivot effectively towards autonomous driving, artificial intelligence, and robotics. Investors await a shareholder vote in November to approve a new pay package for Musk that could potentially be valued at up to $975 billion, contingent upon ambitious company milestones. This package has a target market value of $8.5 trillion, in contrast to Tesla’s recent valuation, which was reported at $1.3 trillion.
With his recent stock purchase, Musk is signaling a strong commitment to Tesla’s strategic direction, particularly in the realm of AI, and aiming to drive investment into his new venture, xAI. Analysts interpret this insider buy as a substantial endorsement for the company’s future and a reaffirmation of Musk’s confidence in Tesla’s trajectory.
