Tesla's CEO, Musk, invests $1 billion in company stock, accumulates enormous gains from subsequent stock price increase
Tesla Stock Surges: Elon Musk Purchases $1 Billion Worth of Shares
In a significant development for the electric vehicle giant, Tesla, CEO Elon Musk has made a substantial investment in the company by purchasing approximately 2.5 million shares of stock, totaling around $1 billion. This marks Musk's first significant purchase since February 2020.
On Friday, the purchases were made at prices ranging from $371.90 to $396.36. The news of Musk's investment was initially well received on the stock market, causing Tesla stock to rise by around 8 percent, reaching levels close to $430 by around 2 pm on Monday. However, the stock did not sustain these high levels, and by Tuesday, it had settled at around $420 in Europe.
Musk's latest investment has increased his stake in Tesla slightly, adding around 2.57 million shares to his trust. As a result, Musk's calculated stake in the entire company was around 13.5 percent as of early September. The increase in Tesla's stock price has resulted in several billion dollars being added to Musk's total stake in the company, bringing his net worth, according to Bloomberg, to approximately $419 billion.
Tesla's market capitalization for 2025 is around $1.32 trillion, a significant increase from the beginning of the year when the stock was struggling. The rise in Tesla's stock price has put the company slightly in the black for the first time since January.
It is important to note that these purchases make up less than 0.1 percent of all Tesla shares. Musk's latest investment comes after he sold Tesla shares worth tens of billions of dollars between late 2021 and late 2022, first to pay taxes and then to finance his Twitter takeover.
In a separate development, the Tesla board awarded CEO Elon Musk a new share package worth $29 billion. The bonus package, presented to Musk in early September, could secure him additional Tesla shares worth billions of dollars, under extreme conditions.
The surge in Tesla's stock price is a testament to the company's continued growth and Musk's ongoing commitment to the electric vehicle industry. As the company continues to innovate and expand, investors will be watching closely to see how the stock performs in the coming months.
Read also:
- Potential Consequences of Dismantling FEMA Vary Across States
- Railway line in Bavaria threatened by unstable slope - extensive construction site at risk
- Wind Farm Controversy on the Boundary of Laois and Kilkenny
- Puerto Rico's Climate Lawfare Campaign experiences another setback with the dismissal of its deals.
