Tesla stock rose on news that CEO Elon Musk committed $1 billion of "his own money" to the purchase of new shares.
Musk's considerable investment in Tesla came to light after it was disclosed in a regulatory filing on Monday.
He purchased the stock on Friday, Sept. 12, acquiring approximately 2.75 million $TSLA shares, priced between $372 and $397 each at the time the sale was executed.
According to CNN, Musk's acquisition of $1 billion in Tesla stock was a highly unusual move for "any CEO."
Typically, the outlet indicated, executives prefer to handle their stock in the form of options, a type of derivative contract that enables the investor to acquire shares at a fraction of their price. Stock options offer flexibility, allowing the holder to buy or sell a specific number of shares within a predetermined time frame.
Musk's massive, ostensible investment in the Tesla brand occurred against the backdrop of an extraordinarily volatile year for the electric vehicle manufacturer. In 2025, Tesla encountered a sales slump alongside worldwide backlash prompted by Musk's political activities.
But in recent weeks, Tesla's Board of Directors has twice signaled its support for and investment in Musk's continued involvement with the brand. In early August, the Board proposed a pay package for their CEO valued at $29 billion.
Earlier this month, the Board upped the stakes with a larger, longer proposed compensation scheme, one that could make Musk a trillionaire. In a letter to investors, the Board voiced its belief that "Elon's singular vision [was] vital to navigating this critical inflection point."
Musk's potential trillion-dollar payday drew condemnation from at least one authoritative figure, Pope Leo XIV.
"If that is the only thing that has value anymore, then we're in big trouble," Leo said of Musk's reported compensation package.
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Sign me up 👍 However, Tesla "bulls" like Dan Ives interpreted Musk's big buy-in as a positive development as far as the future of Tesla and its stock goes, given that it ostensibly equates to a big bet by Musk that he's putting a lot of chips on the table for the company to succeed.
"It's a huge vote of confidence from Musk, and the bulls love seeing this. It sends a positive signal after a very tumultuous year for Musk and Tesla shareholders," Ives said.
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