Elon Musk has purchased approximately $US1 billion ($1.5 billion) worth of Tesla stock, marking his first purchase in over five years. The acquisition, executed through a revocable trust on Friday, was disclosed in a regulatory filing on Monday. Musk acquired around 2.57 million shares on Friday, with prices ranging between $US372 and $US397 per share.
The filing occurred just days after Tesla’s board chair, Robyn Denholm, defended the proposed compensation plan for Musk. In an interview with The New York Times on Friday, Denholm stated that Musk is capable of achieving world-changing technology if motivated by seemingly impossible goals. This proposed plan could grant Musk nearly $US1 trillion if he meets specific performance targets.
The purchase seemed to positively influence investors, as Tesla’s stock experienced a surge of over 6 per cent, reaching approximately $US422 on Monday morning. Musk commented on X, stating that the stock’s increase was “foretold in the prophecy”. Tesla, which manufactures electric vehicles and battery storage systems, has faced challenges in recent quarters.
Sales of Tesla cars have been declining globally and are anticipated to decrease further in the final three months of the year, following the expiration of a tax credit for EV purchases in the United States at the end of September. In 2022, Musk divested over $US20 billion of Tesla stock during his acquisition of Twitter, now known as X.
