On September 12, 2025, Elon Musk, CEO of Tesla Inc., made a significant market move by purchasing approximately $1 billion worth of Tesla shares in open market transactions—the largest insider stock purchase by the billionaire in terms of dollar value. This purchase demonstrates Musk’s renewed commitment to Tesla at a critical time for the company, which has faced extensive market challenges this year. The move was confirmed in a regulatory filing released September 15.
Details of the Purchase
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Shares Acquired: About 2.57 million Tesla shares
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Purchase Price Range: $372.37 to $396.54 per share
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Total Investment: Close to $1 billion
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Date of Purchase: September 12, 2025
| Metric | Details |
|---|---|
| Shares Bought | 2.57 million |
| Price Range | $372.37 – $396.54 |
| Total Value | ~$1 billion |
| Last Insider Buy | February 2020 (approx. $10M) |
This purchase marked Musk’s first open market buy of Tesla stock since early 2020 and came through a revocable trust. The purchase immediately sparked a positive market reaction, with Tesla shares surging over 6% in early trading on the announcement day, reaching their highest close since mid-January 2025.
Strategic Context and Implications
This buy reaffirms Musk’s confidence in Tesla despite recent hurdles, including:
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Declining Tesla vehicle sales amid a global economic slowdown and loss of some U.S. EV tax credits.
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Political controversies surrounding Musk, which have impacted Tesla’s brand sentiment.
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A recent legal battle invalidating Musk’s 2018 compensation deal, leading to a new multi-trillion dollar pay package proposal.
Tesla’s Board of Directors recently proposed an unprecedented compensation plan for Musk valued at nearly $1 trillion if he meets aggressive performance and growth targets. These include raising Tesla’s market capitalization from about $1 trillion currently to $8.5 trillion, launching one million autonomous robotaxis, and scaling profits 24 times above last year’s numbers.
| Tesla’s Board Pay Proposal for Musk |
|---|
| Market Cap Target |
| Robotaxis Deployment |
| Profit Growth Target |
| Potential Total Award |
The board’s defense of this compensation highlights the belief that Musk’s visionary leadership is key to Tesla’s transformation from a carmaker into a robotics and autonomous technology powerhouse.
Market and Investor Reaction
Tesla’s share price had struggled earlier in 2025 due to the above factors, falling about 2% year-to-date before Musk’s buy brought renewed optimism. The insider purchase reversed sentiment, pushing shares into positive territory for the year and reinforcing Musk’s status as both a technological innovator and financial stakeholder deeply invested in Tesla’s success.
Analysts widely welcomed Musk’s large buy, seeing it as a powerful signal of confidence. Matt Britzman of Hargreaves Lansdown stated that this move is “the most definitive indication yet that Musk is fully committed again,” and that the buy could stabilize Tesla’s story amid mixed news.
Long-term Significance
This transaction also aligns with Musk’s desire to increase his ownership stake to around 25%, increasing his influence over Tesla’s strategic direction as the company pivots toward ambitious goals in AI-driven autonomous driving, robotaxis, and humanoid robotics.
The magnitude of this insider purchase combined with the board’s aggressive pay plan underscores Tesla’s focus on groundbreaking technological advancements and operational milestones that could reshape transportation and manufacturing in the coming decade.
Summary Table: Elon Musk’s Tesla Share Purchase Overview
| Aspect | Details |
|---|---|
| Date of Purchase | September 12, 2025 |
| Shares Purchased | 2.57 million |
| Total Value | ~$1 billion |
| Price per Share Range | $372.37 – $396.54 |
| Impact on Tesla Stock | +6% surge on announcement day |
| Last Insider Purchase | February 2020 (approx. $10 million) |
| Board Compensation Plan | Nearly $1 trillion for ambitious targets |
| Key Board Targets | $8.5T market cap, 1M robotaxis, 24x profit growth |
Elon Musk’s $1 billion investment in Tesla shares serves as a strong endorsement of the company’s future and his vision to revolutionize transportation and robotics. The purchase not only bolsters investor confidence but also strengthens Musk’s capability to drive Tesla’s ambitious goals forward despite a complex business environment. This bold insider buy, paired with the record-breaking compensation plan, places Musk and Tesla on an aggressive path for innovation and growth in the years ahead.