KATHMANDU: Tesla shares jumped on Monday after Elon Musk bought more than $1 billion worth of the company’s stock.
It was his first open-market purchase since 2020.
Musk bought about 2.57 million shares on Friday, paying between $372 and $396 each, a regulatory filing showed. The move came as Tesla’s board prepared for a shareholder vote on a new pay plan that could give Musk stock worth up to $1 trillion over the next decade, according to Reuters.
Tesla closed at $395.94 on Friday and rose over 8% in premarket trading Monday. The stock has climbed 66% in the past six months. Before this deal, Musk owned around 13–15% of Tesla.
The company is facing slower car sales, tougher competition and lower profits this year. The board said the pay plan is meant to keep Musk focused on Tesla as it pushes into AI and robotaxis.
Board members have also discussed a possible search for the company’s next CEO.
Musk has said Tesla’s future lies in AI and self-driving technology but warned the company could face “rough quarters” after U.S. EV incentives end later this month.
