Elon Musk has bought about $1 billion worth of Tesla shares, sending the company’s stock up six per cent on Monday, according to a US regulatory filing.
The Securities and Exchange Commission filing showed that Musk, who also owns X and SpaceX, acquired 2.57 million Tesla shares on Friday at prices ranging from $371 to $396.
The purchase came weeks after Tesla unveiled a proposed compensation package for Musk that could exceed $1 trillion if he delivers on ambitious growth targets through new technologies.
Tesla chair Robyn Denholm, a close ally of Musk, defended the plan in several media appearances. Speaking on Bloomberg TV, she said: “He is a generational leader. There aren’t any other people out there like Elon who can actually lead the company over the next decade or so.”
The package could give Musk up to 12 per cent additional ownership of Tesla, but requires the firm to achieve a market capitalisation of at least $8.5 trillion by 2035. Shareholders will vote on the proposal in November.
Tesla is also contesting a Delaware court ruling that struck down Musk’s 2018 pay deal, valued at $55.8 billion.
The company’s current market capitalisation stands at just over $1 trillion, down from earlier highs, with analysts linking the decline partly to Musk’s political controversies, which they say have dented sales in key markets.