By Alex Croft
Copyright independent
Elon Musk has bought nearly $1 billion worth of Tesla stock as he seeks greater control over the electric vehicle maker following a turbulent 2025.
The Tesla chief bought more than 2.5 million shares in the company, a regulatory filing released on Monday showed, prompting shares in the company to jump more than eight per cent in pre market trading.
Musk is demonstrating his commitment to the company after its board proposed a new compensation plan which will see him paid with up to $1 trillion in stock over the next decade if lofty corporate goals are met. The plan is due to go to a shareholder vote next month.
His stake in the company – which has endured a turbulent eight months following public backlash to the billionaire’s previous involvement in the Trump administration, causing a hefty drop in profits – is now around 20 per cent and worth around $250 billion, according to the Wall Street Journal.
Shares in Tesla closed Friday at $395.94 each, before Musk bought the huge number of shares for between $372.37 and $396.54. After the company jumped more than eight per cent in premarket trading, it is up more than 66 per cent over the past six months.
The shareholder vote on Musk’s pay package will go to a vote in November, and will be intended on keeping his focus on the electric car maker while he threatens to turn his attention to other business projects.
He has consistently demanded a bigger stake and increased voting power at Tesla, having also threatened to build AI and robotics products outside of Tesla if he cannot get 25 per cent voting power as part of the pay package.
Tesla is racing to hit ambitious targets on robotaxis, artificial intelligence and robotics, as it looks to transition from solely EV maker to wide-ranging tech leader.
The manufacturer is also looking to rebuild its brand after Musk’s political alliance with Trump prompted concern among investors about distractions and potential lost sales, weighing on the company’s stock this year. The company’s profits fell 71 per cent in the first quarter of this year, and 16 per cent in the second.
But on Friday, board chair Robyn Denholm dismissed concerns that Musk’s political activity had hurt sales and said the billionaire was back “front and center” at the company after several months at the White House.
Musk has also warned of a “rough few quarters” for Tesla with the U.S. government incentives for buying electric cars set to expire later in September.
