Tesla stock turned positive for 2025 after CEO Elon Musk bought $1 billion worth of shares. The purchase, revealed in a regulatory filing, was made on September 12 through a revocable trust. It was Musk’s first open-market buy since 2020 and immediately boosted investor confidence.
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The stock jumped 6.2 percent in early trading and closed at $417.89, leaving Tesla up 4 percent for the year. This is a sharp turnaround from earlier in 2025 when the stock fell nearly 45 percent by April due to weak sales and growing competition.
The move comes as Tesla’s board considers a historic pay package for Musk. If approved, it could award him up to $1 trillion in stock if Tesla meets ambitious market and performance goals.
For Musk, the buy signals renewed commitment. In 2022, he sold over $20 billion in Tesla shares to finance his purchase of Twitter, now called X. With this latest investment, he appears focused on reassuring shareholders of his long-term belief in Tesla.
Still, the company faces serious challenges. Global deliveries dropped 13 percent in the first half of 2025. U.S. market share slipped below 40 percent in August. Sales in Europe weakened, and output from Tesla’s Shanghai plant slowed over the summer.
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Pressure is also building as U.S. incentives for electric vehicle buyers expire in September. Musk has warned of “a few rough quarters” before future bets like robotaxis and humanoid robots start producing big revenue.
Tesla’s board continues to back him strongly. Chair Robyn Denholm praised Musk as a “generational leader” guiding the company beyond cars and into broader technology ventures. She dismissed concerns about his outspoken political views, insisting they do not define Tesla’s business.
Even so, Musk remains controversial. His recent appearance at a London rally organized by far-right activist Tommy Robinson drew sharp criticism, with UK officials calling his remarks “inflammatory and dangerous.”
Musk is still the world’s richest person, with Bloomberg valuing his fortune at $419 billion. His $1 billion buy-in strengthens his stake and signals to investors that he sees Tesla’s future as bright despite near-term turbulence in the electric vehicle market.
