Tesla shares experienced a significant boost after CEO Elon Musk revealed a substantial purchase of 2.57 million shares, totaling approximately $1 billion. This marks Musk’s first open market purchase of Tesla stock since February 2020, sending a strong signal of confidence to investors and the market.
The purchase, made on Friday, immediately impacted Tesla’s stock price. Pre-market trading on Monday morning showed a 6% increase in share value. This positive movement comes despite Tesla’s slightly lower performance in 2025, relative to its recent rally. The stock has shown impressive growth over the past three months, climbing over 25%.
This significant insider buying is particularly noteworthy given Tesla’s recent announcement regarding a potential $975 billion pay package for Musk, contingent upon the achievement of ambitious company milestones. Before this latest purchase, Musk already held around 13% of Tesla’s shares, solidifying his position as a major stakeholder.
Analysts see this move as a clear vote of confidence from Musk, suggesting his belief in Tesla’s future growth and potential. The substantial investment underscores his continued commitment to the company and could further bolster investor sentiment. The market reacted positively, showcasing the significant influence Musk holds over Tesla’s stock performance.
The development adds another layer of complexity to the ongoing narrative surrounding Tesla, its ambitious goals, and Musk’s leadership. As the electric vehicle market continues to evolve, Musk’s actions will undoubtedly remain a key focus for investors and industry observers alike.
