Tesla Inc. stock surged into positive territory for 2025 after CEO Elon Musk purchased about $1 billion worth of shares, signaling confidence in the electric vehicle maker’s long-term prospects despite a turbulent year.
According to a regulatory filing released Monday, Musk acquired the shares on September 12 through a revocable trust, marking his first open-market purchase of Tesla stock since February 2020.
The move coincided with Tesla’s board weighing an unprecedented compensation package that could award Musk stock valued at around $1 trillion if the company achieves ambitious performance and market capitalization milestones.
Tesla shares rallied 6.2% in early trading on Monday and closed at $417.89, pushing the stock up about 4% on a year-to-date basis. This rebound comes after a steep selloff earlier in the year that saw Tesla’s stock fall as much as 45% by April, driven by weak vehicle sales and intensifying competition in the electric vehicle sector.
Musk, who sold more than $20 billion worth of Tesla stock in 2022 to finance his acquisition of Twitter, now X, appears to be signaling renewed commitment to Tesla shareholders at a time when investor sentiment has been fragile.
What we know
Despite the rally, Tesla continues to grapple with significant headwinds. Global vehicle deliveries fell 13% in the first half of 2025, with Cox Automotive estimating that Tesla’s share of the U.S. electric vehicle market slipped below 40% in August.
Sales have also weakened in Europe, while shipments from Tesla’s Shanghai plant dropped in July and August.
The company faces additional pressure as U.S. federal incentives for electric vehicle purchases are scheduled to phase out at the end of September, a shift Musk has warned could lead to “a few rough quarters” before the company’s bets on robotaxis and humanoid robots begin to deliver meaningful revenue.
What you should know
Tesla’s board has maintained strong support for Musk despite the challenges. Board chair Robyn Denholm described him as a “generational leader” in an interview, emphasizing that he remains the right figure to guide Tesla’s transition from a pure-play automaker to a diversified technology company.
- She also downplayed concerns about Musk’s political activity, noting that his personal views should not be conflated with Tesla’s business trajectory.
- However, Musk’s recent appearance at a London rally organized by far-right activist Tommy Robinson sparked criticism in the United Kingdom.
- A spokesman for Prime Minister Keir Starmer described Musk’s remarks predicting violence in the UK as inflammatory and dangerous.
Musk remains the world’s richest individual, with a net worth estimated at $419 billion according to the Bloomberg Billionaires Index. His latest Tesla stock purchase not only strengthens his stake in the company but also reassures investors that he continues to see long-term value in Tesla’s position within the rapidly evolving global EV market.
