Elon Musk has shaken Wall Street once again, making his largest open-market Tesla purchase ever. Last week, the billionaire acquired nearly $1 billion worth of Tesla shares, fueling a sharp rally in the company’s stock price.
📈 In pre-market trading on Monday, Tesla’s shares surged nearly 6% after Musk disclosed the move. According to filings, he bought roughly 2.57 million shares at prices between $371 and $396 per share.
A Record-Breaking Bet Amid Challenges
The timing is striking. Tesla faces slowing sales, aging vehicle models, and growing competition from both legacy automakers and emerging EV startups. On top of that, Musk’s political involvement has drawn mixed reactions, with critics claiming it has weighed on Tesla’s brand.
Despite these headwinds, Tesla’s board is backing Musk with one of the boldest pay packages in corporate history: a $975 billion performance-based plan, tied to highly ambitious milestones over the next decade. Chairwoman Robyn Denholm defended the move, describing Musk as a “generational leader” whose continued presence is vital to Tesla’s future.
Rare Insider Buying
Musk’s direct stock purchases are extremely rare. Data from Verity shows his last open-market buy was back in February 2020, involving about 200,000 shares worth just $10 million. That makes last week’s billion-dollar purchase a major statement of confidence.
Analysts are divided. While consensus targets on Wall Street suggest a potential 20% downside, others see the purchase as a strong bullish signal, especially given Musk’s push to transform Tesla into a leader not only in EVs, but also in AI, robotics, and autonomous driving.
AI and xAI Connection
Tesla shareholders are also preparing to vote on a new xAI investment plan, Musk’s separate artificial intelligence venture. According to Wedbush analyst Dan Ives, Musk’s Tesla buy signals that he is “doubling down on AI integration within Tesla”, and that investors should read it as a direct bet on the company’s future in next-generation technologies.
Broader Tensions Around Musk
At the same time, Musk’s role in politics has raised two concerns for Tesla investors:
🔹 Whether his political activism distracts from running the company
🔹 Whether his outspoken conservative views and strained ties with President Donald Trump could alienate customers
Meanwhile, Tesla’s global deliveries fell 13% in Q2, underscoring operational challenges. The company is under pressure to refresh its product lineup while fending off stronger EV competition from China, Europe, and the U.S.
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