Musk, CEO of Tesla, purchases a billion dollars' worth of company stock, significantly boosting his earnings due to subsequent stock price growth.
Elon Musk Renews Investment in Tesla Amidst Robotaxi Plans and Compensation Package
In a significant move, tech entrepreneur Elon Musk renewed his investment in Tesla by purchasing approximately 2.57 million shares of the company's stock on Friday, 12.9. The purchase, worth around $1 billion, came after Musk sold tens of billions of dollars' worth of Tesla stock between late 2021 and late 2022, primarily to pay taxes and finance his Twitter takeover.
Musk's latest investment makes up less than 0.1% of all Tesla stock, but it did not significantly increase his stake in the company. As of early September, Musk's calculated stake in Tesla was around 13.5%.
The news of Musk's purchases was initially well received on the stock market, with Tesla stock rising by an additional 8% in European trading. However, on Tuesday in Europe, the Tesla increase continued, but not to levels far above $420, as reached on the previous day. By around 2 pm, Tesla stock reached levels close to $430, which would have fully recovered the losses it had incurred since the beginning of the year after a peak in late 2024.
The market capitalization of Tesla was around $1.3 trillion on Friday, and it rose further after Musk's purchase. Tesla stock closed on Monday with an increase of 3.6 percent to $410.04.
The Tesla board presented a new bonus package for Musk, worth approximately $29 billion in Tesla stock. However, the bonus package is contingent on extreme conditions being met. The primary reason for this massive compensation is the ambitious plans for Tesla's robotaxi business and vehicle sales.
Musk's recent investment in Tesla coincides with the approval of robotaxi pilot programs in Nevada and the company's plans for aggressive expansion in this sector. If successful, these plans could significantly boost Tesla's market position and stock price.
At his current net worth of around $419 billion, Musk's new investment in Tesla is not significant financially. However, it underscores his continued belief in the company's potential and his commitment to its success.
In conclusion, Elon Musk's latest investment in Tesla, coupled with the company's ambitious plans for robotaxi business and vehicle sales, could potentially lead to further growth and success for the electric vehicle giant.
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