Tesla’s share price jumped six percent on Monday after CEO Elon Musk bought roughly $1 billion worth of company stock, according to a filing with the Securities and Exchange Commission. The billionaire, who also owns the social‑media platform X and the space firm SpaceX, purchased 2.57 million shares on Friday at prices ranging from $371 to $396 per share.
The purchase comes in the same month that Tesla unveiled a proposed compensation package for Musk that could exceed $1 trillion if he meets his growth targets for new technologies. Tesla chair Robyn Denholm, a close associate of Musk, defended the plan on Bloomberg TV, calling him a “generational leader” capable of guiding the company for the next decade. The plan would grant Musk, already the world’s wealthiest person, up to an additional 12 percent of the company’s shares. To earn the full award, Tesla must reach a market capitalization of at least $8.5 trillion by 2035. Currently, the company’s market value is just over $1 trillion, slightly below its recent peak after weak earnings.
Analysts say Tesla’s market‑value decline is partly due to Musk’s ties to far‑right politicians and causes, which have drawn criticism and hurt sales in key markets. The company is also contesting a Delaware court ruling that invalidated a 2018 compensation package worth about $55.8 billion. A shareholder vote on the new proposal is set for November.
Musk’s latest investment signals his confidence in Tesla’s growth prospects. As the company navigates ongoing challenges and controversies, the outcome of the compensation plan and the upcoming vote will be closely watched by investors and industry observers. With its current market capitalization and ambitious goals, Tesla’s future trajectory is likely to have major implications for the technology and automotive sectors.
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