Elon Musk Invests $1 Billion in Tesla Shares Ahead of Huge Compensation Proposal

On September 12, 2025, Elon Musk, CEO of Tesla Inc., acquired approximately 2.57 million shares of Tesla stock, valued at nearly $1 billion. This marks Musk's first open-market purchase of Tesla stock since February 2020. Following the disclosure, Tesla's stock price surged over 5% in premarket trading on September 15, 2025.

Musk's acquisition of 2.57 million shares at prices between $371 and $396 per share amounts to an investment of nearly $1 billion. Following the disclosure of Musk's stock purchase, Tesla's stock price experienced a significant uptick, gaining over 5% in morning trading on September 15, 2025.

Tesla has proposed a new compensation package for Musk, potentially worth up to $1 trillion. This package is contingent upon achieving ambitious performance milestones over the next decade, including increasing Tesla's market valuation from $2 trillion to $8.5 trillion. If approved, this plan could make Musk the world's first trillionaire.

Musk has argued for maintaining a 20% ownership stake to shield the company from activist investors and takeovers, especially as Tesla shifts toward AI and robotics.

Musk's political actions and controversial public persona, including his recent resignation from a Trump administration position, have drawn criticism, including from Pope Leo, who condemned extreme wealth inequality.

Musk's substantial stock purchase is interpreted as a strong signal of his confidence in Tesla's future, especially as the company shifts focus toward artificial intelligence and robotics. However, this move comes amid growing concerns over Musk's political affiliations and his increasing involvement in the Trump administration, which have drawn criticism and led to protests against Tesla.