Elon Musk Buys $1 Billion in Tesla Shares, Boosting Confidence Amid Stock Rally

Tesla CEO Elon Musk made a notable move by purchasing approximately $1 billion worth of Tesla shares on September 12, 2025, marking his largest open market stock purchase since 2020. The acquisition consisted of around 2.57 million shares, traded between $372 and $397 each, and was revealed in a regulatory filing released the following Monday.

This stock buy comes alongside the announcement of a new compensation plan for Musk by Tesla’s board, which could potentially award him nearly $1 trillion in shares if the company meets ambitious performance milestones. The board’s chair, Robyn Denholm, expressed confidence that the plan would incentivize Musk to push Tesla to new technological breakthroughs.

Investors responded positively to Musk’s purchase, pushing Tesla’s shares up by more than 6 percent early Monday to around $422. The stock closed the day at approximately $410, reaching positive territory for the year, after a period of volatility and declining sales pressures.

Analysts view Musk’s move as a strong signal of commitment to Tesla’s long-term growth, particularly in areas like automation, artificial intelligence, and expansion of electric vehicle markets. Dan Ives, a Wedbush analyst, described the purchase as “immense confidence” in Tesla’s future prospects.

Despite challenges such as the winding down of US tax incentives for electric vehicles and geopolitical tensions impacting markets, Musk’s large purchase signals faith in Tesla’s innovation pipeline and ability to maintain leadership in the electric mobility sector.

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