Elon Musk Buys $1 Billion Worth of Tesla Stock

Tesla Inc.’s shares surged back into positive territory for 2025 after Chief Executive Officer Elon Musk purchased about $1 billion worth of stock, signaling renewed confidence in the electric vehicle company’s long-term prospects despite a turbulent year.

A regulatory filing released on Monday revealed that Musk acquired the shares on September 12 through a revocable trust. This marks his first open-market purchase of Tesla stock since February 2020.

The move comes as Tesla’s board is reviewing a record-breaking compensation package that could see Musk receive stock valued at around $1 trillion if the company meets ambitious performance and market capitalization milestones.

Tesla shares rallied 6.2% in early trading on Monday and closed at $417.89, lifting the stock about 4% on a year-to-date basis. This rebound follows a steep selloff earlier in the year, during which the stock fell as much as 45% by April, largely due to weak vehicle sales and intensifying competition in the electric vehicle sector.

Musk, who sold more than $20 billion worth of Tesla shares in 2022 to help finance his acquisition of Twitter—now known as X—appears to be signaling renewed commitment to Tesla shareholders at a time when investor sentiment has been fragile.

Despite the bounce, Tesla continues to grapple with significant challenges. Global vehicle deliveries declined 13% in the first half of 2025, and Cox Automotive estimated that Tesla’s share of the U.S. electric vehicle market slipped below 40% in August. Sales have also weakened in Europe, while shipments from the company’s Shanghai plant fell in July and August.

The company also faces pressure from expiring U.S. federal incentives for electric vehicle purchases, which are scheduled to phase out at the end of September. Musk has cautioned that this could lead to “a few rough quarters” before the company’s bets on robotaxis and humanoid robots begin generating substantial revenue.

Tesla’s board has continued to express strong support for Musk, with chair Robyn Denholm describing him as a “generational leader” and emphasizing his role in steering Tesla from a car manufacturer into a diversified technology company. She also downplayed concerns about Musk’s political activities, insisting that his personal views should not be conflated with the company’s business trajectory.

Nonetheless, Musk has faced backlash in the United Kingdom following remarks at a London rally organized by far-right activist Tommy Robinson. Prime Minister Keir Starmer’s spokesperson criticized Musk’s comments as inflammatory and dangerous.

Musk remains the world’s richest individual, with an estimated net worth of $419 billion, according to the Bloomberg Billionaires Index. His latest stock purchase not only boosts his stake in Tesla but also reassures investors of his belief in the company’s long-term position within the rapidly evolving global EV market.