🕒 Last updated on September 16, 2025
Tesla shares jumped sharply on Monday after its chief disclosed that he had bought about $1 billion worth of the company’s stock. This marks his first open-market purchase of Tesla shares since early 2020.
A bold show of faith in Tesla
The news immediately boosted Tesla’s stock, which rose 6% in early trading. Investors took the move as a strong signal that the company’s leader is doubling down on his commitment. The purchase comes at a crucial moment for Tesla, which is not only known for making electric cars but also has ambitious plans to become a leader in artificial intelligence and robotics.
In total, 2.57 million shares were bought last Friday. The prices paid ranged between $372.37 and $396.54 per share, according to a filing released on Monday. The size of the purchase makes this one of the most significant stock buys by a company leader in recent years, especially as it involves such a large amount of personal money being put into the business.
A company at a crossroads
The timing of the stock buy is particularly important. Tesla has been facing slowing sales of its electric vehicles, increasing costs, and growing competition from other carmakers. Its most recent financial results showed margin pressures, highlighting how expensive it has become to produce vehicles while demand is not growing as quickly as before.
Despite these challenges, Tesla remains one of the most closely watched companies in the world. Its technology, global reach, and strong brand keep it at the center of attention. The stock purchase adds a fresh burst of optimism and puts the company back in the spotlight.
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The move also arrives just days after Tesla’s board proposed a massive $1 trillion compensation plan for its chief. The plan lays out extremely high financial and operational targets, setting the stage for how the company will measure progress in the future. Supporters say this is an attempt to keep leadership focused on Tesla and its long-term goals.
At the same time, the company leader has often stated that he wants a bigger stake and more voting power in Tesla. As of December, he owned about 13% of the company. He has previously mentioned that he would prefer to build new products outside of Tesla if he cannot secure around 25% voting power. The new stock purchase pushes him closer to that goal and strengthens his position.
Market reaction and leadership role
Tesla’s shares have struggled in 2025 compared to other technology giants. While many of the so-called “Magnificent 7” companies have delivered strong stock market returns, Tesla’s stock was down about 2% for the year before Monday’s trading session. The new purchase helped lift the mood among investors, marking the third straight day of gains.
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Market watchers said the stock buy is the clearest sign yet that Tesla’s leader is “all in” again, after what some saw as a shaky start to the year. His strong financial commitment is seen as a public declaration of confidence in Tesla’s mission and future growth.
The company’s board chair recently addressed worries that outside activities and political views might have hurt Tesla’s image. She emphasized that the chief is now fully focused on Tesla once more, describing him as back “front and center” at the company. This reassurance, combined with the stock purchase, has provided a much-needed boost for the brand.
Tesla continues to carry weight in both the automotive and technology worlds. The latest move underlines the importance of leadership actions in shaping market perception. For investors and fans alike, the billion-dollar buy was more than just a financial transaction—it was a bold signal of confidence in Tesla at a time when the company is facing both pressure and opportunity.