Tesla share price rallied over 3% on Monday after reports revealed that CEO Elon Musk purchased more than 2.5 million shares worth approximately $1 billion. Tesla stock price closed 3.63% higher at $410.26 apiece, valuing the electric vehicle maker at $1.28 trillion.
According to a regulatory filing, Musk acquired the shares in multiple tranches at varying prices on Friday. The purchase is being interpreted by investors as a sign of the billionaire’s confidence in the company’s long-term prospects, Reuters reported.
Earlier this month, Tesla unveiled a proposed pay package for Musk that could potentially make him the world’s first trillionaire, contingent upon achieving a series of highly ambitious performance goals over the next decade.
As outlined in the regulatory filing, Tesla plans to grant Musk shares equivalent to as much as 12% of the company’s equity in 12 separate tranches. Each tranche will vest only if Tesla meets demanding milestones across production, share price appreciation, and operating profit, Reuters reported.
If approved by shareholders, the plan would mark one of the largest executive compensation packages in history — underscoring both Musk’s influence and Tesla’s high-stakes growth trajectory. The company’s annual shareholder meeting is scheduled for November 6, where investors will vote on the proposal.
Tesla Share Price Performance
Tesla stock price has delivered robust gains in recent months despite facing a slowdown in sales this year — attributed in part to political controversies surrounding Musk’s alignment with US President Donald Trump and rising competition from Detroit automakers as well as Chinese rivals.
Tesla share price has advanced 24% over the past month and 72% in the past six months. The shares of EV maker are up 8% year-to-date (YTD), while over the past year Tesla stock price has surged 81%.
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