Shares of Tesla experienced a significant boost on Monday, driven by the news that CEO Elon Musk acquired approximately $1 billion worth of the electric vehicle maker's stock. The stock price of Tesla (TSLA) concluded the day with an impressive increase of 3.6%, closing around $410. Despite peaking earlier in the day above $425, the shares pulled back slightly, but still marked a positive turn for 2025, as they had ended the previous year at about $404. Notably, this marks the first time since late January that Tesla shares have traded above this level.
In typical fashion, Musk celebrated the surge in share prices with his trademark humor. He took to X (formerly Twitter) to quip about the stock’s increase, highlighting that it was up $69 to approximately $420, referencing the 'prophecy' in jest. This whimsical commentary underscores the CEO's unique approach to engaging with Tesla's investor community.
The rise in Tesla shares can be directly attributed to Musk's substantial stock purchases. A recent regulatory filing revealed that he made 25 separate transactions last Friday, acquiring around 2.57 million shares at prices ranging from approximately $372 to $396. The stock closed at $395.94 on that day, indicating a strategic investment by Musk that many investors interpret as a sign of his unwavering commitment to the company.
Despite the positive momentum, Tesla has faced challenges this year, including a decline in demand for electric vehicles (EVs) and criticism surrounding Musk's involvement with the Trump administration, particularly in relation to cuts in government spending. This backdrop adds context to Musk's recent stock purchases, signaling his dedication to navigating these hurdles.
Earlier this month, Tesla proposed a long-term compensation package for Musk, which could potentially reach up to $1 trillion if the company achieves specific milestones. Analyst Dan Ives from Wedbush, a well-known Tesla bull, remarked that Musk's recent purchases are a significant indicator of confidence for Tesla investors. He emphasized that this move reflects Musk's commitment to his ambitious vision for Tesla's future, particularly in the realm of artificial intelligence.
This article has been updated to provide additional context and to reflect the closing figures of Monday's trading session.
