Tesla shares jump as Musk’s $1bn stock buy renews investor faith

Tesla shares surged 6% on Monday after Elon Musk bought about $1 billion worth of stock, giving investors fresh confidence that the billionaire remains firmly committed to the electric car maker’s future.

For Tesla’s backers, the move is more than a financial gesture. It signals Musk’s renewed belief in the company’s potential, at a time when Tesla faces slower car sales, heavy competition, and pressure to expand into artificial intelligence and robotics.

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Musk bought 2.57 million Tesla shares on Friday, paying between $372 and $396 each, according to a U.S. filing. It was his first open-market purchase since 2020. “This is the clearest signal yet that Musk is slamming the accelerator on being all in again,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. “The Tesla-Musk narrative looks firmly back on track after a shaky start to the year.”

The stock purchase comes just one week after Tesla’s board proposed a $1 trillion compensation plan for Musk. The package sets ambitious goals for revenue, growth, and innovation, while also answering Musk’s long-standing demand for more control. He has often said he wants at least 25% voting power, warning he could shift Tesla’s AI and robotics projects elsewhere without it.

Tesla, however, remains under pressure. Despite Monday’s rally, shares have dropped 2% this year, making Tesla one of the weakest performers in the “Magnificent Seven” group of mega-cap tech stocks. Analysts cite cooling demand for electric cars, rising production costs, and stronger competition from Chinese and legacy automakers.

Tesla board chair Robyn Denholm pushed back on fears that Musk’s politics had dented sales. “Elon is back front and center at Tesla,” she said last week. “He’s fully focused on the company’s next chapter.”

As of December, Musk held about a 13% stake in Tesla, LSEG data shows. His latest buy pushes his ownership closer to the voting power he has been seeking. For many investors, that means Tesla’s identity and future remain tied closely to its unpredictable but determined founder.