Tesla shares surged again on Monday after Elon Musk disclosed a massive purchase of his company’s stock.
According to a regulatory filing, Musk acquired 2.57 million Tesla shares last week through The Elon Musk Revocable Trust, spending close to $999 million at prices between $371.90 and $396.36 per share.
This is his first open-market purchase since 2020, a move analysts interpret as both a vote of confidence and a calculated step to strengthen control ahead of an important shareholder meeting in November.
With this acquisition, Musk’s trust directly holds 96 million Tesla shares and indirectly controls more than 413 million, tightening his grip on the company as it prepares to vote on a proposed $1 trillion performance-based compensation package.
The plan, set for 6 November, ties Musk’s payout to extraordinary milestones such as delivering 20 million vehicles, reaching an $8.5 trillion market cap, and deploying one million robotaxis and humanoid robots. If approved, Musk’s stake could rise to as much as 29%.
Tesla’s stock closed at $395.94 on Monday, up 7.36% and reversing its year-to-date decline of around 2%. Options activity also spiked, with more than 120,000 contracts trading around the $360 strike price, reflecting heightened bullish sentiment despite lower implied volatility. The rally extends a rebound in September, lifting Tesla’s shares nearly 10% month-to-date.
Still, the company’s operational realities are fraught. Global EV sales are down 10% this year. Europe has seen a sharp 40% decline, while China has slipped 6%. In the U.S., temporary strength is being fuelled by consumers rushing to take advantage of the $7,500 federal tax credit before it expires.
Tesla’s American market share dropped to 38% in August, the lowest in eight years, a contrast to the 80% it held in 2020. Analysts warn that the third-quarter gains may prove short-lived once incentives fade.
Internally, there have been questions over Musk’s political involvement and its effect on Tesla’s brand. Board chair Robyn Denholm objected these concerns on Friday, saying: “It’s up to him” and adding that Musk is now “front and center” at Tesla after several months at the White House.
