Tesla’s share price surged six percent on Monday after CEO Elon Musk purchased approximately $1 billion worth of shares in the company, according to a regulatory filing with the Securities and Exchange Commission. The billionaire, who also owns social media platform X and space company SpaceX, acquired 2.57 million shares on Friday at prices ranging from $371 to $396.

This significant investment comes in the same month that Tesla unveiled a proposed compensation package for Musk, which could potentially exceed $1 trillion if he achieves his vision for substantial growth from new technologies. The package has been defended by Tesla chair and close Musk associate Robyn Denholm, who recently appeared on Bloomberg TV, describing Musk as a “generational leader” capable of leading the company over the next decade.

The proposed compensation plan could provide Musk, already the world’s wealthiest person, with up to 12 percent of additional total company shares. To reach the full award, Tesla must achieve a market capitalization of at least $8.5 trillion by 2035. The company’s current market capitalization stands at just over $1 trillion, slightly down from its peak following recent weak earnings.

Analysts attribute the decline in Tesla’s market value to Musk’s association with far-right politicians and causes, which has sparked criticism and led to plummeting sales in major markets. Tesla is currently challenging a Delaware court ruling that struck down a 2018 package for Musk worth approximately $55.8 billion. A shareholder vote on the new proposal is scheduled for November.

Musk’s latest investment in Tesla demonstrates his confidence in the company’s potential for growth and success. As the company navigates challenges and controversies, the outcome of the proposed compensation package and the upcoming shareholder vote will be closely watched by investors and industry observers. With its current market capitalization and ambitious goals, Tesla’s future trajectory will likely have significant implications for the technology and automotive industries.