Do CEOs buy personal stocks from their own companies? Yes, they do. One notable example is Elon Musk, who bought Tesla’s stock after five years. On September 12, 2025, he purchased 2.57 million shares worth $1 billion. So, what made him do this? Is it his strategy to pull in more investors, because Tesla’s stock price jumped 6% on Monday, right after the news made the headlines? Well, it’s clear that the way of the world’s richest man is something many investors want to follow. Or is it simply Elon’s trust in Tesla despite its recent struggles with declining sales? Learn more.
What Happened?
On February 14, 2020, Elon bought about 200,000 shares worth $10 million. But this time around, he raced for a big chunk and bought 2.57 million shares, spending about a staggering $1 billion. It’s his biggest personal stock buy ever.
Tesla’s Stock Situation After Elon Bought Its Shares
Tesla’s stock rose more than 25% in the last 3 months. However, just before the news broke out, Tesla’s share price was down for 2025 overall. Tesla’s total market value (all shares included) was $1.3 trillion at the closing on Friday. And after the news, the stock price soared 6%.
Well, generally, when a company’s CEO buys their own company shares (and at such a huge amount), it sends out a signal of belief. And the investors worldwide take this as a “vote of confidence,” which is why Tesla’s stock price went up.
Bigger Picture: Musk’s Pay & Tesla’s Plans
- Do you know that Elon Musk is about to receive a new paycheck? Is the world’s richest man getting even richer? Yes, Tesla announced that it will ask its shareholders to approve a new pay package for Musk.
- To put it in perspective, this isn’t a typical paycheck but a long-term stock-based incentive package.
- For this to happen, Tesla must achieve all the set milestones. Elon could receive a package valued at $975 billion to $1 trillion over the next decade if the goals are met.
- Currently, the goal is to reach a market capitalization of $8.5 trillion and to expand into robo-taxis and vehicle production.
Problems Tesla Is Facing
It would be interesting to see how Teslac aims to go from today’s $1.3 trillion to $8.5 trillion, given that it’s struggling with dropping sales. Reasons:
- Musk’s political involvement in recent times has hurt Tesla’s brand. Its customers have openly shown a major dislike for it.
- Additionally, after a feud with President Donald Trump, his administration has ended government incentives, which have impacted the purchase of electric cars in the U.S.
What Experts Are Saying?
Several mixed opinions are rising, one of the famous is the Wall Street consensus (according to TipRanks.com), which predicts that Tesla stock could drop another 20% from here.
On the other hand, Dan Ives, a renowned tech analyst, said Musk’s $1 billion purchase is a “huge sign of confidence.”
Additionally, Musk himself is confident that Tesla’s future lies in AI and robotics, and he is “doubling down” on that belief.
Many other analysts have offered a positive outlook on the long-term impact, but if Tesla shifts its focus toward:
- Autonomous driving (self-driving cars)
- Artificial Intelligence (AI)
- Robotics
Talking about Artificial Intelligence, Musk is also urging Tesla’s shareholders to approve an investment in his new company, xAI. So, will Tesla’s journey from $1.3 trillion to $8.5 trillion earn Elon Musk his $1 trillion paycheck?
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