Tesla stock surged nearly 8% in premarket trading on Monday after CEO Elon Musk disclosed purchasing almost $1 billion worth of company shares last week, signalling renewed confidence in the electric-vehicle maker.
According to a regulatory filing, Musk bought 2.57 million shares in open-market transactions on Friday, at prices ranging between $372.37 and $396.54 per share.
The purchases come as Tesla shares already gained more than 7% on Friday, extending momentum from the previous session. Despite the rebound, Tesla’s stock remains down about 2% so far this year. If premarket gains hold, this will mark the company’s third consecutive session of growth.
Investor sentiment has been weighed down in recent months by sluggish EV demand and concerns over Musk’s political activities. However, Tesla board chair Robyn Denholm recently dismissed suggestions that politics had dented sales. She noted Musk is now “front and center” at the company after spending months engaged in US political affairs.
The timing of Musk’s stock purchase coincided with Denholm’s remarks defending a controversial proposal to award Musk stock options worth up to $1 trillion, contingent on Tesla achieving ambitious market value and performance milestones.
This is Musk’s first open-market Tesla stock purchase since February 2020. By contrast, in 2022, he sold more than $20 billion worth of Tesla shares to finance his acquisition of Twitter.
The move is seen as a show of confidence in Tesla’s long-term prospects after a challenging first half of 2025. The company reported a 13% drop in global vehicle deliveries, adding pressure to its core business. Musk has recently emphasised Tesla’s focus on robotaxis and humanoid robots, though he also warned that the automaker may face “a few rough quarters” once the US phases out electric vehicle purchase incentives at the end of this month.
Musk, who is currently the world’s richest person with a net worth of $419 billion, appears to be doubling down on his vision for Tesla despite near-term headwinds in the EV market.
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