Elon Musk Buys $1 Billion Worth of Tesla Shares
In a move seen as a vote of confidence in the electric car maker, billionaire Elon Musk has acquired approximately $1 billion worth of Tesla shares. This significant purchase brings his total stake in the company to around 20%, making him one of the largest shareholders.
According to market analysts, shares in Tesla jumped over 6% in early trading on Monday following the news. Danni Hewson, head of financial analysis at AJ Bell, noted that "markets like it" when company leaders demonstrate confidence in their own companies through significant investments. "It's a vote of confidence from one of the most influential people in the company," Hewson said.
Musk has long sought more control over Tesla, which he co-founded in 2003. The company's board recently proposed a compensation plan valued at approximately $1 trillion, which would grant Musk up to 12% of the firm's shares if certain targets are met. This proposal followed discussions with Musk, who had demanded a 25% stake in the company.
Tesla has faced challenges this year, struggling to advance its stock price. However, the company remains a leader in the electric vehicle market and has made significant strides in autonomous driving technology. Musk has been pushing for investment in robotaxis, automation, and artificial intelligence (AI), which he believes will be crucial for the company's future success.
The purchase of $1 billion worth of Tesla shares is not the only recent development involving Musk. Last month, the company's board granted him 29 billion worth of shares as an interim award, following a larger pay package agreed upon in 2018 that was struck down in court.
This move has sparked debate among analysts and investors about the implications for Tesla's future direction. Some see it as a sign of Musk's commitment to the company's success, while others worry about his increasing influence over the firm.
As Tesla continues to navigate the challenges of the electric vehicle market, one thing is clear: Elon Musk's significant investment in the company will have far-reaching consequences for both the business and the industry as a whole.
*Reporting by Bbc.*
