Tesla CEO Elon Musk has purchased approximately $1 billion worth of Tesla shares, marking his first open-market buy since 2020 and signalling renewed confidence in the electric vehicle giant’s future.
The move comes just days after Tesla’s board proposed a historic $1 trillion compensation package for Musk, contingent on the company achieving a series of ambitious performance milestones over the next decade.
According to regulatory filings released Monday, Musk acquired 2.57 million shares on September 12 through a revocable trust, paying between $372.37 and $396.54 per share.
The purchase immediately boosted investor sentiment, with Tesla stock rallying over 6% in early trading and closing at $417.89, reversing a year-to-date decline.
Musk’s stock acquisition is widely seen as a strategic signal to shareholders and markets that he remains committed to Tesla’s long-term vision, despite recent turbulence. The company has faced declining vehicle deliveries, increased competition in the EV sector, and the looming expiration of U.S. federal incentives for electric vehicle purchases.
“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.
Tesla’s share of the U.S. EV market slipped below 40% in August, and global deliveries fell 13% in the first half of 2025, according to Cox Automotive estimates.
Musk’s purchase comes as the company pivots toward artificial intelligence, robotaxis, and humanoid robotics to diversify revenue streams and regain momentum.
The board’s proposed compensation package, potentially the largest in corporate history, would award Musk up to 12 tranches of stock if Tesla meets a series of aggressive targets, including raising Tesla’s market capitalisation from $1.3 trillion to $8.5 trillion by 2035, producing 20 million vehicles annually, launching one million robotaxis, delivering one million Optimus humanoid robots, and increasing adjusted earnings to $400 billion.
If achieved, the plan could elevate Musk’s stake in Tesla to 25%, granting him greater voting power, a demand he has repeatedly made, warning that he would prefer to pursue AI and robotics ventures outside Tesla if not granted sufficient control.
Tesla Chair Robyn Denholm defended the proposal, calling Musk a “generational leader” and stating, “If Elon achieves all the performance milestones, his leadership will propel Tesla to become the most valuable company in history.”
The board restated that the package was entirely performance-based and aligns Musk’s incentives with shareholder interests.
The announcement has reignited debate over executive compensation and corporate governance. Critics argue that Musk, already Tesla’s largest shareholder, does not need additional incentives, while supporters say the scale of the package reflects the scale of Tesla’s ambitions.
“This is a ridiculously large pay package. It raises lots of questions,” said Brian Quinn, professor at Boston College Law School, noting that Musk moved Tesla’s incorporation from Delaware to Texas last year, potentially to avoid legal scrutiny.
Musk’s previous $56 billion compensation plan from 2018 was struck down by a Delaware judge earlier this year due to concerns over board independence. That ruling is currently under appeal
