Quick overview

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Elon Musk announced that he purchased Tesla stock for the first time since February 2020, leading to a surge in share prices. Musk made a significant insider purchase on Friday, acquiring 2.57 million shares at various prices, totaling approximately $1 billion.

Traders viewed this as a vote of confidence from the outspoken CEO.  Tesla’s stock price increased by around 6%.

 

Shares closed slightly lower for 2025, despite the recent rally, with the stock rising more than 25% over the past three months. This type of purchase is rare for Musk; according to Verity data, he last acquired about 200,000 shares on February 14, 2020, for around $10 million. Verity notes that this is the most valuable purchase he has made to date.

Earlier this month, the company announced that it would seek shareholder approval for a new compensation package for Musk, potentially reaching up to $975 billion, contingent on several ambitious milestones. Before Friday’s acquisitions, Musk owned approximately 13% of Tesla.

Tesla’s stock has encountered difficulties due to a decline in sales, which can be partly attributed to Elon Musk’s political actions that have negatively impacted the brand, as well as the removal of certain electric vehicle incentives by the Trump administration. According to TipRanks.com, analysts hold mixed opinions about the stock. The Wall Street consensus price target indicates a potential decrease of approximately 20% from its current level.

While many are optimistic that Musk can effectively restructure the business to focus more on autonomous driving, artificial intelligence, and robotics, he is also seeking shareholder approval for Tesla’s investment in his latest venture, xAI.