Tesla Shares Rise on Elon Musk’s $1 Billion Stock Purchase

Core Points - Tesla's CEO Elon Musk purchased over 2.5 million shares of Tesla stock for approximately $1 billion, marking his first open market purchase since February 2020 [1][2] - This purchase indicates Musk's commitment to Tesla as the board prepares for a shareholder vote on a new pay package that could potentially grant him up to $1 trillion in stock over the next decade [2][5] - Following the announcement, Tesla's shares rose more than 8% in premarket trading, with the stock having increased over 66% in the past six months [2] Company Performance - Prior to the recent purchase, Musk owned around 15% of Tesla stock [3] - Tesla's board introduced a new pay package to ensure Musk remains focused on the company amid distractions from his political activities and other ventures [3] - The company experienced a significant profit decline, with profits falling 71% in Q1 and 16% in Q2 of this year [3] Future Outlook - Musk has expressed optimism about Tesla's future, particularly regarding the robotaxi business, but has also warned of potential "rough quarters" following the expiration of U.S. government incentives for electric vehicle purchases [4] - The Tesla board is reportedly in the process of finding a successor for Musk, indicating potential leadership changes in the near future [4]