Tesla shares gain after Elon Musk discloses purchase

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Elon Musk, CEO of SpaceX and Tesla, attends the Viva Technology conference at the Porte de Versailles exhibition center in Paris on June 16, 2023.

Gonzalo Fuentes | Reuters

Tesla shares jumped after CEO Elon Musk disclosed his first purchase of the stock in the open market since February 2020.

Musk purchased 2.57 million shares at various prices Friday which tallies up to about $1 billion, a significant insider purchase traders took as a vote of confidence from the outspoken CEO.

Tesla shares were higher by 6% in premarket trading Monday morning. They closed Friday slightly lower for 2025 despite a recent rally with the stock up more than 25% over the last 3 months.

The company earlier this month said it would ask shareholders to approve a new pay package for Musk that could be worth up to $975 billion based on various ambitious milestones. Before the purchases Friday, Musk owned around 13% of Tesla.

These kinds of purchases are rare for Musk with him last buying about 200,000 shares worth around $10 million on February 14, 2020, according to Verity data. It’s his largest purchase ever by value, according to Verity.

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