Tesla Inc. shares rallied on Monday after CEO Elon Musk purchased about $1 billion worth of the company’s stock, his first open-market buy since February 2020.
Gatekeepers News reports that according to a regulatory filing, Musk acquired the shares on September 12 through a revocable trust, signaling renewed confidence in the electric vehicle maker after a volatile year.
The move comes as Tesla’s board considers an unprecedented compensation package that could grant Musk stock worth around $1 trillion if the company meets ambitious performance and market capitalization milestones.
Tesla shares jumped 6.2% in early trading and closed at $417.89, up 4% year-to-date. The rebound follows a steep selloff earlier in 2025, when the stock plunged as much as 45% by April on weak sales and growing competition in the electric vehicle sector.
Musk, who sold more than $20 billion of Tesla stock in 2022 to fund his acquisition of Twitter (now X), appeared to signal renewed commitment to shareholders.
Ongoing Challenges
Despite the rally, Tesla faces headwinds. Global deliveries fell 13% in the first half of 2025, while its U.S. EV market share slipped below 40% in August, according to Cox Automotive. Sales have also slowed in Europe, and shipments from Tesla’s Shanghai plant dropped in July and August.
The company also faces policy risks as U.S. federal incentives for EV purchases expire at the end of September. Musk has warned this could bring “a few rough quarters” until Tesla’s robotaxi and humanoid robot projects begin to generate meaningful revenue.
Board Support and Political Backlash
Tesla’s board has reiterated its support for Musk. Chair Robyn Denholm called him a “generational leader,” stressing he is best positioned to steer Tesla’s evolution from an automaker into a diversified technology company.
She dismissed concerns about Musk’s political activism, but controversy flared after his appearance at a London rally organized by far-right activist Tommy Robinson, where his remarks were criticized by UK officials as “inflammatory and dangerous.”
Musk remains the world’s richest individual, with a net worth of $419 billion, according to the Bloomberg Billionaires Index. His latest Tesla stock purchase not only boosts his stake but also reassures investors of his belief in Tesla’s long-term value in the global EV market.
