Tesla(US:TSLA) Finbold·2025-12-28 14:20Core Insights - Elon Musk's purchase of Tesla shares in September 2025 has resulted in significant paper gains as the stock price increased towards the end of the year [1] - The shares were acquired at an average price of approximately $395.94, totaling around $1 billion, marking one of Musk's largest personal investments in Tesla [1] - As of December 28, 2025, Tesla shares were trading at approximately $475.19, reflecting a 20% increase from the purchase price, with Musk's stake now valued at about $1.2 billion [2] Stock Performance Overview - Tesla shares experienced volatility in 2025, initially declining due to Musk's focus on government work and weakening global sales, but rebounded strongly in December [3][4] - The stock's recovery was significant, pushing returns on Musk's investment well above the interim lows experienced earlier in the year [3] Market Sentiment and Investor Confidence - Investor sentiment improved in April 2025 when Musk announced a reduction in his Washington role, alleviating concerns about leadership focus and leading to a rally in Tesla's stock [4] - Momentum strengthened in May following a tariff truce between the US and China, which positively impacted Tesla's supply chain and international demand [6] - Tesla's board proposed a substantial compensation package for Musk, further boosting investor confidence, coinciding with Musk's $1 billion stock purchase, signaling strong belief in the company's future [6]