Tesla Skyrockets as Musk Invests $1B in Shares, Wiping Out 2025 Losses
Elon Musk, in a remarkable move, purchased approximately $1 billion worth of Tesla shares on September 13. This action sent the electric vehicle maker’s stock soaring, effectively erasing all losses for 2025. The rare insider purchase represents a significant vote of confidence from the CEO amidst the mounting challenges faced by Tesla.
Tesla shares leaped 3.6% on Monday to $410.26, surpassing its 2024 closing price and marking an 85% recovery from April’s low of $221.86. The purchase of 2.6 million shares was made through Musk’s family foundation, further bolstering his already substantial stake in the company.
This development aligns with Tesla’s proposed new compensation package for Musk, potentially worth up to $1 trillion over the next decade. This package is contingent on the company achieving ambitious milestones, including an $8.5 trillion market valuation. However, the package requires Tesla to first reach a $2 trillion valuation – nearly double its current $1.3 trillion market cap.
Despite the stock recovery, Tesla continues to face headwinds. These include declining vehicle sales, increased competition from Chinese firm BYD, and consumer backlash linked to Musk’s political activities. As of August 2025, the company’s market share in the US electric vehicle market has slipped below 40%.
Source: CNN Business