Tesla shares soared about eight per cent in premarket trading Monday after CEO Elon Musk disclosed a massive purchase of nearly US$1 billion worth of company stock, his largest open-market buy in years.
Regulatory filings show Musk snapped up 2.57 million shares in multiple transactions on Friday, paying between $372.37 and $396.54 per share. The move extended Tesla’s rally, which saw the stock jump more than seven per cent on Friday, setting it up for a potential third straight session of gains after a sluggish start to the year.
The purchase is being read by investors as a strong vote of confidence in the electric-vehicle maker’s future at a time when sentiment has been pressured by slowing EV demand and concerns over Musk’s political activities.
Tesla board chair Robyn Denholm moved quickly to reassure markets, saying Musk is “back front and center” at Tesla following several months of White House engagement, and dismissed speculation that his political involvement has weighed on sales.
If the gains hold through the trading session, Tesla could reverse its two per cent year-to-date decline and regain momentum heading into the final quarter of 2025.