Tesla Inc.’s shares rallied on Monday after CEO Elon Musk bought about $1 billion worth of the company’s stock, his first open-market purchase since February 2020. According to a regulatory filing released September 16, 2025, Musk acquired a revocable trust on September 12. The purchase signals renewed faith in the electric vehicle maker’s long-term prospects after a turbulent year marked by slowing sales and fierce competition.
Following the disclosure, Tesla’s stock surged 6.2% in early trading to close at $417.89, pushing the company up about 4% year-to-date. This rebound contrasts sharply with the steep sell-off earlier in 2025 that saw shares plunge by as much as 45% by April. Analysts say the move is a strong vote of confidence from Musk at a time when investor sentiment around Tesla had been fragile.
Musk’s purchase comes as Tesla’s board considers an unprecedented compensation plan that could award him stock worth up to $1 trillion if the company hits ambitious performance and market-cap milestones. It also follows his sale of more than $20 billion in Tesla shares in 2022 to finance his acquisition of Twitter, now rebranded as X. His renewed buying spree may reassure shareholders about his commitment to Tesla’s future growth.
Despite the stock rally, Tesla continues to face headwinds. Global vehicle deliveries fell 13% in the first half of 2025, with U.S. market share slipping below 40% in August, according to Cox Automotive. Sales have weakened in Europe, and shipments from Tesla’s Shanghai plant dropped during July and August. Musk has warned that the scheduled phase-out of U.S. federal EV incentives at the end of September could bring “a few rough quarters” before newer initiatives like robotaxis and humanoid robots generate significant revenue.
Tesla’s board has stood firmly behind Musk, calling him a “generational leader” guiding the company’s transition from an automaker to a diversified tech enterprise. Yet his political activity has drawn criticism, most recently over remarks at a London rally organized by far-right activist Tommy Robinson—comments a U.K. government spokesman called “inflammatory and dangerous.” Even so, Musk remains the world’s richest person with an estimated net worth of $419 billion, and his latest Tesla stock purchase underscores his belief in the company’s long-term position in the fast-evolving electric vehicle market.
source: nairametrics