Tesla‘s stock surged more than 8% on 15 September 2025 after CEO Elon Musk disclosed a near $1 billion share purchase, his first significant buy in five years.
The move, seen as a decisive vote of confidence, comes amid slowing EV demand, heightened competition, and scrutiny over Musk’s proposed new pay package.
Musk’s $1bn Stock Buy Sparks Rally
On September 15, 2025, Tesla‘s share price climbed more than 8% in pre-market trading after a regulatory filing disclosed that Elon Musk had purchased about 2.57 million Tesla shares, worth roughly $1 billion.
The open-market transactions were made on Friday, September 12, with prices ranging between $372.37 and $396.54 per share. The disclosure triggered a sharp rally as investors interpreted the move as a major signal of confidence from Tesla’s chief executive.
Tesla, which trades on the NASDAQ and is headquartered in California, has faced months of pressure from slowing electric-vehicle demand and rising competition. Musk already controlled about 13% of the company, and the new purchase further boosts his stake.
First Major Buy Since 2020
This is Musk’s first significant open-market buy of Tesla stock since 2020, according to multiple reports. Analysts say the purchase demonstrates his commitment at a time when Tesla’s future in EVs is under scrutiny.
Shares spiked immediately after the disclosure, with heavy volumes indicating traders saw the move as a bullish bet on Tesla’s long-term prospects.
The purchase also comes as the company’s board considers a proposed new compensation package for Musk, one that could link his rewards to ambitious targets in artificial intelligence, robotics, and robotaxis.
Why Musk’s Move Matters
Tesla faces headwinds from slowing adoption in the US and Europe, supply chain constraints, and concerns that Musk is overstretched by his other ventures, including SpaceX and X.
By committing nearly $1 billion of personal funds, Musk is sending a clear message: Tesla remains central to his vision. Analysts note the increased stake could give him added leverage in shaping Tesla’s strategy.
However, the board’s proposed pay plan—which could be worth hundreds of billions if milestones are achieved—has attracted scrutiny. Governance experts warn that Tesla’s ambitious targets in AI and robotics may prove challenging to achieve.
The Road Ahead for Tesla
The key test will be whether Musk’s investment translates into stronger performance. Investors will track Tesla’s quarterly deliveries, profit margins, and progress in AI and autonomous vehicle projects.
Regulatory challenges in both the US and abroad may complicate expansion. The board also faces pressure to justify Musk’s vast pay package if growth falters.
For now, Musk’s $1 billion buy has boosted confidence in Tesla’s trajectory. Yet analysts caution that optics alone cannot offset the structural challenges confronting the EV giant. Execution, not symbolism, will determine whether Tesla sustains momentum in the coming quarters.
Originally published on IBTimes UK
