Elon Musk just spent $1 billion on Tesla shares. He'll have to spend a lot more to ramp up his control.

Core Insights - Elon Musk purchased approximately 2.6 million shares of Tesla for $1 billion, increasing his ownership stake from 12.7% to 12.8% [1][2] - Musk aims for at least 25% voting control of Tesla to maintain influence, but achieving this would require significant financial resources due to Tesla's market value of $1.2 trillion [2][3] - The recent purchase only marginally increased Musk's stake, highlighting the challenges of acquiring a larger ownership percentage through open market transactions [3][4] Ownership and Financial Implications - Musk's 2018 compensation plan includes 304 million shares currently tied up in legal disputes, which are not factored into his current ownership calculations [2] - Achieving a 25% ownership stake would necessitate purchasing an additional 12.2% of the company, estimated to cost over $150 billion, not accounting for potential stock price increases due to his purchases [3] - Musk's net worth is $419 billion, but a significant portion is tied up in Tesla and other illiquid assets, complicating the ability to raise cash for further acquisitions [4] Strategic Moves - Tesla's board has proposed a pay package that could grant Musk $1 trillion in stock if he meets specific operational goals and significantly increases Tesla's market value over the next decade [8] - Musk's recent stock purchase may also serve as a confidence signal in Tesla rather than a direct power grab, marking his first open-market purchase since 2020 [9]