Elon Musk has bought about $1 billion (£785 million) worth of Tesla shares, his first open-market purchase in more than five years.
The move, revealed in a regulatory filing, triggered a sharp rise in Tesla's stock, with shares climbing more than 7% in pre-market trading and boosting the wider S&P 500.
The billionaire's buy is being hailed by some as a bold show of confidence in the electric vehicle (EV) maker he co-founded.
Yet others question whether the purchase is more of a calculated public relations move designed to shore up support as Tesla faces mounting challenges.
Investor Confidence Signal
Insider buying is often interpreted as a bullish sign, with analysts noting that executives rarely invest their own money unless they see long-term potential. Traders typically view such moves as a signal that those closest to the company believe in its future.
Danni Hewson, head of financial analysis at AJ Bell, told the BBC that Musk was 'likely looking to build back his stake in Tesla', adding: 'Markets like it when company leaders buy into their own companies because it suggests they feel positive about the firm's future performance.'
Musk's purchase also comes at a crucial time. Tesla's board has proposed a new compensation plan for him worth up to $1 trillion (£785bn), tied to highly ambitious performance milestones.
The billionaire was recently granted a separate $29bn (£22.7bn) interim award after a previous pay package was struck down in court.
By buying more shares himself, Musk may be sending a message that he is prepared to share in the risk—and the reward—alongside ordinary investors.
TSLA up $69 to ~$420 as foretold in the prophecy pic.twitter.com/6uZfOIMPyO
— Elon Musk (@elonmusk) September 15, 2025
Or Just a PR Stunt?
Sceptics point out that $1bn, while a huge sum for most, represents only a small slice of Musk's estimated $380bn (£298bn) fortune. Analysts noted that his wealth remains overwhelmingly tied to Tesla stock, meaning the purchase may not dramatically alter his exposure.
Hewson acknowledged that there could be less flattering motives behind the move.
'An inventive and ungenerous interpretation of Musk's actions is he saw the news about Larry Ellison becoming the world's richest man and decided to juice Tesla stock a bit to regain the title. Stranger things have happened,' she said.
Critics also argue that the company's fundamentals have not changed overnight. Tesla is grappling with slowing sales, tougher competition from Chinese rivals, and the loss of key US tax credits. Musk's increasingly divisive political involvement has also dented the brand.
Market Reaction
Tesla's stock rallied on the news, offsetting declines in other technology shares.
Musk himself celebrated the surge on X, posting: 'TSLA up $69 to ~$420 as foretold in the prophecy.'
Observers noted that the buy has redirected investor focus back to Tesla's long-term projects, such as robotaxis and humanoid robots, which Musk has championed as central to the company's future.
What's Next for Tesla?
Whether Musk's purchase proves to be a turning point or a temporary rally remains unclear. The move has provided a much-needed morale boost, but long-term success will depend on Tesla meeting its lofty performance targets and regaining momentum in a crowded EV market.
For now, the debate continues: is Musk's $1bn purchase a genuine signal of investor confidence—or a well-timed PR stunt aimed at steadying shareholder nerves before a crucial pay package vote?
