Elon Musk‘s $1 Billion Tesla Stock Purchase Fuels Rally, Echoes Past ‘420’ moment
Los Angeles – Tesla CEO Elon Musk bolstered investor confidence and sent the company’s stock soaring Tuesday after disclosing a $1 billion purchase of Tesla shares, the largest such buy in nearly five years and seven months. The move comes ahead of a pivotal shareholder vote on his proposed $1 trillion compensation package.
The stock jump sparked immediate comparisons to Musk’s 2018 tweet referencing taking Tesla private at $420 per share – a moment that drew scrutiny from the Securities and Exchange Commission. While this purchase is a legitimate financial investment, it arrives at a time when Musk’s leadership and compensation are under intense public and shareholder examination.
Tesla shares closed at $419.52, up 5.96% in New York Stock Market trading, following the disclosure of the purchase made on September 12th. Regulatory filings revealed Musk acquired the shares,marking his biggest investment in the company sence February 14,2020,when he purchased $10 million worth of stock.
“Tesla stronger is a sign of tremendous trust, and Musk is strengthening Tesla AI betting,” stated Dan Ives, Global Technology Research Director at Wedbush, reflecting wall Street’s positive reaction.
The purchase is widely interpreted as a vote of confidence in tesla’s future and a response to the upcoming shareholder vote on his compensation plan. The plan, to be decided at the annual meeting on November 6th, could possibly award Musk $1 trillion over twelve stages through 2035, contingent on achieving specific market capitalization milestones.Currently, Tesla’s market cap stands around $1.3 trillion, requiring important growth to reach the plan’s targets, including a peak of $8.5 trillion. Tesla’s highest share price to date was $479.86 on December 17 of last year,valuing the company at approximately $1.54 trillion.
