Tesla shares surge after Musk buys $1 billion stake amid record pay push
TOI World Desk | Sep 15, 2025, 19:49 IST
Highlight of the story: Tesla shares surged more than 6% after CEO Elon Musk disclosed the purchase of nearly $1 billion in company stock, boosting confidence just as Tesla’s board pushes for a record $1 trillion pay package to secure his leadership. The buy strengthens Musk’s stake and signals confidence ahead of a critical November shareholder vote. Analysts see the move as both strategic and symbolic, tying into Musk’s push for greater control over Tesla’s AI and robotics future.
Tesla stock is moving again after CEO Elon Musk made a significant personal investment in the company’s future. The electric vehicle maker’s shares rose more than 6% in premarket trading on Monday after Musk revealed a purchase of nearly $1 billion worth of Tesla stock. This move reinforces his commitment as the board seeks an unprecedented $1 trillion compensation package to secure his leadership.
According to a regulatory filing from September 15, Musk bought about 2.57 million Tesla shares on September 12 at prices between $372 and $396 per share through his revocable trust. This purchase increased his stake in the company by roughly 0.6%, bringing his ownership closer to his long-term goal of 25%. Musk currently owns about 13% of Tesla.
This decision came just days after Tesla Chair Robyn Denholm defended the proposed pay package in a high-profile interview. She called it “critical to ensuring Musk remains fully focused on Tesla’s next decade of growth.” The package, which will go to a shareholder vote in November, would be the largest CEO pay plan in corporate history.
Musk has stated that he is not willing to expand Tesla’s artificial intelligence projects, especially in robotics and self-driving technology, unless his ownership stake increases significantly. The proposed package would give him performance-based options that could eventually raise his voting control to between 25% and 29%, but only if Tesla meets ambitious targets — including growing its market value above $8 trillion and selling one million humanoid robots by 2035.
Analysts point out that Musk’s latest purchase is both symbolic and strategic. By increasing his personal stake, he signals confidence to investors and strengthens his case for more control. At the same time, the purchase helps address shareholder concerns about dilution related to the large option-based pay plan.
Market reaction
Tesla shares traded at $428.23 during Monday’s session, breaking above key resistance levels after the filing was made public. Traders identified $460 as the next major test, with a possible extension to $484 if momentum continues. On the downside, analysts noted that $400 serves as immediate support, with deeper pullbacks potentially targeting $364 or $326.
“The combination of insider confidence, AI momentum, and the upcoming shareholder vote has renewed market enthusiasm,” said Daniel Ives of Wedbush Securities. “Musk is effectively doubling down on Tesla at a critical moment.”
Musk’s high-profile purchase has sparked intense debate among investors and governance experts. Many are asking whether the $1 billion buy was timed to influence sentiment before the November vote or if it represents Musk’s personal hedge against criticism of the compensation package. Others wonder if the purchase is a prelude to further actions aimed at consolidating Musk’s influence at Tesla.
For now, Tesla’s stock is responding positively, with renewed optimism about the company’s role in shaping the future of electric vehicles, robotics, and artificial intelligence. However, the volatility highlights the risks: both the ambitious performance targets in Musk’s package and the broader economic environment, including rising interest rates and competition from global automakers, could complicate Tesla’s path.
As the November vote approaches, investors will be watching closely to see if Musk’s strategy of building his stake pays off — and whether Tesla can maintain its momentum amid historic expectations.
This decision came just days after Tesla Chair Robyn Denholm defended the proposed pay package in a high-profile interview. She called it “critical to ensuring Musk remains fully focused on Tesla’s next decade of growth.” The package, which will go to a shareholder vote in November, would be the largest CEO pay plan in corporate history.
Musk has stated that he is not willing to expand Tesla’s artificial intelligence projects, especially in robotics and self-driving technology, unless his ownership stake increases significantly. The proposed package would give him performance-based options that could eventually raise his voting control to between 25% and 29%, but only if Tesla meets ambitious targets — including growing its market value above $8 trillion and selling one million humanoid robots by 2035.
Analysts point out that Musk’s latest purchase is both symbolic and strategic. By increasing his personal stake, he signals confidence to investors and strengthens his case for more control. At the same time, the purchase helps address shareholder concerns about dilution related to the large option-based pay plan.
Market reaction
“The combination of insider confidence, AI momentum, and the upcoming shareholder vote has renewed market enthusiasm,” said Daniel Ives of Wedbush Securities. “Musk is effectively doubling down on Tesla at a critical moment.”
Investor questions
For now, Tesla’s stock is responding positively, with renewed optimism about the company’s role in shaping the future of electric vehicles, robotics, and artificial intelligence. However, the volatility highlights the risks: both the ambitious performance targets in Musk’s package and the broader economic environment, including rising interest rates and competition from global automakers, could complicate Tesla’s path.
As the November vote approaches, investors will be watching closely to see if Musk’s strategy of building his stake pays off — and whether Tesla can maintain its momentum amid historic expectations.