Tesla rises 8% after historical billions purchase from Elon Musk

For the first time in years, Tesla CEO Elon Musk has again purchased shares from his own company. This time it is an exceptionally large purchase, which means that investors responded immediately and the course of Tesla shot up considerably. But is it primarily a sign of trust or is there another reason behind this move?

Musk buys 1 billion dollars in Tesla shares

Documents show that Musk has purchased 2.57 million shares from Tesla, accounting for nearly 1 billion dollars. The last time he bought shares was in February 2020. Then it was 200,000 pieces worth 10 million dollars. Musk has never bought shares in his Tesla for such a large amount.

The purchase is striking, because the CEO has regularly sold shares in recent years to finance other projects, such as the takeover of Twitter (now known as X). Investors therefore see this step as a signal that Musk keeps confidence in the future of Tesla.

Yet more is playing with it. Tesla recently announced that it wants to give his CEO a reward package that can rise to almost 1 trillion dollar, if he achieves a series of ambitious goals. Shareholders still have to vote on that in November. Some connoisseurs suspect that Musks purchase can also be intended to gain extra support in that vote.

Purchase of musk sets in motion

The fair responded immediately. Even before the opening of Wall Street, the share of Tesla is 8.11 percent higher. The company is known for its substantial price movements, but such an increase purely due to a personal purchase of Musk itself is rare.

Musk already owns 13 percent of the shares. With that he remains the largest individual shareholder and his assets are closely linked to the performance of Tesla. His wealth is estimated at $ 419 billion, with which he leads the list of richest people in the world.

He lost that position briefly last week to Oracle founder Larry Ellison, but now Musk is again at the top. Facebook founder Mark Zuckerberg follows third place with a capital of 265 billion dollars.