Arcadiadaily – Elon Musk Snaps up roughly $1 billion worth of Tesla shares in a move that has reignited investor enthusiasm for the electric carmaker. The billionaire entrepreneur purchased around 2.5 million shares, marking his first open-market stock buy since 2020. The acquisition was disclosed in a regulatory filing on Monday and quickly sent Tesla’s stock soaring more than 6% in early trading.
The purchase underscores Musk’s determination to maintain influence at Tesla, where he already holds around 13% of the company. Analysts see the move as a strong vote of confidence, particularly at a time when Tesla faces challenges from slowing sales. Rising competition, and the loss of key U.S. tax incentives for electric vehicles. According to market expert Danni Hewson, investors generally react positively when company leaders invest heavily in their own firms. Interpreting it as a signal of optimism for long-term growth.
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Beyond the financial vote of confidence, Elon Musk Snaps his way back into headlines with Tesla’s board discussing fresh compensation packages. A recently proposed plan could give Musk another 12% of Tesla shares worth up to $1 trillion if he meets certain milestones, and the board also granted him a $29 billion interim award last month after a court struck down his 2018 pay package.
Musk has openly pushed for greater control of Tesla. Demanding as much as a 25% stake and at times threatening to walk away from the company. His vision for the firm extends beyond electric vehicles, focusing heavily on robotaxis, automation, and artificial intelligence. While these futuristic projects hold promise, critics note that Musk’s motivations may not be entirely tied to business. Some observers speculate his timing was influenced by rival billionaire Larry Ellison briefly overtaking him as the world’s richest man.
While investors welcomed Musk’s stock purchase, Tesla’s reputation continues to wrestle with the CEO’s divisive political involvement. The British government recently accused Musk of using “dangerous and inflammatory language” after he addressed a rally linked to far-right activist Tommy Robinson. His comments about impending violence stirred backlash, raising concerns about how his political entanglements could affect Tesla’s brand.
Tesla’s board hinted that they designed lucrative compensation packages not only to secure Musk’s leadership. But also to encourage him to scale back his political ventures. Still, board chair Robyn Denholm recently emphasized that Musk remains “back, front and centre” at Tesla. For now, Elon Musk Snaps his stake higher, signaling renewed commitment to the company’s vision. But questions linger over whether politics or business will ultimately drive his next big move.
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This article is based on information from BBC News.
Writer By: Rahma Azhari | Editor By: Randa Saragi
