Elon Musk has made a rare move by spending $1 billion of his personal wealth to buy additional Tesla shares. The purchase gave the battered stock a much-needed boost, restoring investor confidence and turning the company’s performance positive for the year.
The purchase, disclosed in a filing on Monday, was completed last Friday. Few CEOs use their own money to buy company stock without exercising options. Musk’s action immediately lifted Tesla (TSLA) shares 7% at Monday’s open before settling nearly 4% higher by the end of the day. That gain erased earlier 2025 losses, which had once seen Tesla down 42% for the year.
Analyst Dan Ives of Wedbush Securities called the move a “huge vote of confidence.” He said it sends a positive signal after a volatile period for Musk and Tesla shareholders. The $1 billion outlay highlights Musk’s extraordinary wealth. In fact, the rise in Tesla’s stock value on Monday added about $5.8 billion to his net worth—more than covering the cost of the purchase.
A Volatile Year for Tesla
Tesla shares have been on a roller coaster. They nearly doubled after the U.S. election, as investors bet that Musk’s ties to then President-elect Donald Trump would help its outlook, particularly for self-driving cars and robotaxis. But the rally collapsed after Musk joined and later split with Trump’s administration, fueling political backlash that hurt Tesla sales. The company also faced fierce EV competition from China’s BYD and looming expiration of the U.S. $7,500 tax credit.
Despite setbacks, Tesla stock has recovered from its lows. Supporters argue that the company’s long-term value rests on breakthroughs in autonomous technology. Last week, Tesla proposed a new compensation plan that could give Musk stock options worth up to $1 trillion if Tesla hits aggressive targets, including a $2 trillion market cap.
Musk currently owns 413 million Tesla shares, about 12.8% of the company. His new purchase added 2.6 million shares but barely increased his stake. Still, Musk insists he wants 25% control to steer Tesla’s AI and robotics ambitions. Without it, he has warned he may shift more efforts to xAI, his separate artificial intelligence company.
The bold stock purchase underscores Musk’s unique position. As the world’s richest person, he can afford such symbolic gestures—moves that not only influence Tesla’s future but also highlight the growing debate about wealth, power, and corporate leadership.
