Elon Musk Making First Stock Purchase of Tesla for $1 Billion Since 2020
Elon Musk Boosts Tesla Stake and Signals Commitment to Long-Term Growth
In a significant move, Elon Musk, the CEO of Tesla, has purchased 2.55 million shares of the electric vehicle company on September 12, 2021. This marks his first Tesla stock purchase on the open market in over five years.
The purchases were made through the Elon Musk Revocable Trust, and the total cost of the purchase was approximately $1 billion. The recent purchase increased Musk's stake in Tesla by 0.62%.
Musk's latest move seems designed to reassure investors and send a message of commitment to Tesla's long-term growth. The stock had been sliding in recent months due to Musk's public feud with President Donald Trump and the White House. However, the surge occurred after Musk's recent purchase, with Tesla stock surging more than 6% on the news, reaching around $420 per share.
Interestingly, the purchase was not part of a 10b5-1 trading plan, suggesting a personal decision of confidence in Tesla's future. Musk directly owns 96 million Tesla shares, and his latest purchase has increased his indirect ownership to more than 413 million shares.
The weighted average price per share ranged between $371.90 and $396.36, indicating a strategic investment in the company. William Blair's Jed Dorsheimer believes Musk's buy, coupled with momentum around deliveries and Tesla's ongoing Robotaxi rollout, signals strong confidence in Tesla's future business.
The Tesla board recently proposed an unprecedented $1 trillion compensation package for Musk, set for a shareholder vote in November. The compensation package is tied directly to market value milestones, meaning Musk's payout depends heavily on Tesla's future stock performance. The name of the lawyer who presented the proposal for Elon Musk's unusual $1-billion award package is not mentioned in the provided search results.
The compensation package is subject to a shareholder vote in November. If approved, it would be a significant amount, equating to $1 trillion in value, and would further solidify Musk's commitment to Tesla's long-term success.
In conclusion, Elon Musk's recent purchase of Tesla shares and the proposed compensation package suggest a strong belief in Tesla's future growth and potential. As the company continues to push the boundaries of electric vehicle technology and expand its business, investors will be watching closely to see how these developments unfold.
