Tesla CEO Elon Musk has purchased nearly $1 billion in Tesla stock, according to a fresh regulatory filing, boosting investor confidence and sending the company’s share price up by six percent on Monday.
The filing with the U.S. Securities and Exchange Commission (SEC) revealed that Musk bought 2.57 million shares on Friday at prices ranging from $371 to $396.
This purchase comes in the same month Tesla proposed a record-breaking compensation package for its chief executive—one that could exceed $1 trillion if Musk achieves his ambitious growth targets through new technologies.
Tesla chair and Musk ally Robyn Denholm has been actively defending the package in media appearances.
“He is a generational leader. There aren’t any other people out there like Elon who can actually lead the company over the next decade or so,” Denholm told Bloomberg TV on Friday.
The plan would potentially grant Musk up to 12 percent more in Tesla shares, if the company reaches a staggering $8.5 trillion market capitalization by 2035. A shareholder vote on the proposal is scheduled for November.
Tesla is currently appealing a Delaware court ruling that struck down Musk’s 2018 $55.8 billion pay package.
As of now, Tesla’s market capitalization stands at just over $1 trillion, down from its peak, following weaker earnings and growing criticism of Musk’s controversial political alignments. Analysts say his embrace of far-right figures has hurt the company’s sales in key markets.
Despite these challenges, Musk’s billion-dollar stock purchase has reassured investors about his long-term commitment to Tesla, sparking renewed optimism in the electric vehicle giant’s growth trajectory.
