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Key Takeaways
- Elon Musk purchased some 2.57 million Tesla shares last week, sending the stock higher in early trading.
- The CEO’s investment was worth approximately $1 billion.
- The move is seen as a sign Musk is more focused on Tesla and its move into artificial intelligence.
Tesla (TSLA) shares surged 8% in premarket trading Monday after it was revealed CEO Elon Musk purchased some $1 billion worth of the electric vehicle’s stock.
A regulatory filing showed Musk made 25 separate purchases last Friday totaling approximately 2.57 million shares for prices ranging from about $372 to $396. The stock closed Friday at $395.94.
The move is seen by investors as a further commitment by Musk to Tesla, which has struggled this year with falling demand for EVs, and backlash from the CEO’s work with the Trump administration in cutting government spending.
Dan Ives of Wedbush, a longtime Tesla bull, wrote that the move “is a huge sign of confidence for Tesla bulls and shows Musk is doubling down on his Tesla A.I. bet.”
In addition, earlier this month, the company proposed a long-term pay package for Musk that could reach up to $1 trillion depending on whether Tesla meets certain milestones.
Shares of Tesla entered Monday down about 2% year-to-date.
