TLDR
- Elon Musk purchased 2.57 million Tesla shares worth $1 billion.
- The buy boosts his stake by 0.6%, strengthening control.
- Musk’s last Tesla stock purchase was in February 2020.
- A shareholder vote on his pay package is set for November.
- Tesla stock closed at $395.94, up 7.36% on September 12, 2025.
Tesla Inc. (NASDAQ: TSLA) shares closed at $395.94 on September 12, 2025, up 7.36%, before surging another 7.69% to $426.40 in pre-market trading.
The rally followed news that CEO Elon Musk bought $1 billion worth of Tesla shares, his largest insider purchase by value.
According to an SEC filing, Musk purchased about 2.57 million shares between $372 and $396 per share on September 12. The acquisition increases his stake in Tesla by 0.6%, bringing it closer to the 25% control threshold he has long desired.
Elon Musk just bought over 2.56 million of $TSLA shares in surprise Form 4 filing worth over $1 billion
Stock up another 3.5% premarket pic.twitter.com/ffbrlheF1T
— Special Situations 🌐 Research Newsletter (Jay) (@SpecialSitsNews) September 15, 2025
Rare and significant purchase
This move marks Musk’s first open-market purchase of Tesla shares since February 2020, when he acquired 200,000 shares worth $10 million. The $1 billion outlay signals strong confidence in Tesla’s future, with analysts calling it a bullish sign for long-term investors.
Wedbush analyst Dan Ives noted the purchase demonstrates Musk’s commitment to Tesla’s AI and robotics ambitions, describing it as “a huge sign of confidence for Tesla bulls.”
Tied to pay package ambitions
Tesla’s board recently proposed a new CEO compensation package worth as much as $975 billion, which shareholders will vote on in November. If Musk meets ambitious goals — including pushing Tesla’s market value to $8.5 trillion and selling one million robots in the next decade — his voting control could rise to between 25% and 29%.
Musk has previously said he would not be comfortable scaling Tesla’s AI efforts unless he secured greater ownership. The insider purchase could strengthen his influence ahead of the vote.
Financial performance and valuation metrics
Tesla’s current market cap stands at $1.28 trillion. Over the past year, the stock has gained 72.29%, while the S&P 500 advanced 17.67%. However, year-to-date performance remains negative at -1.96%.
The company reported $92.72 billion in trailing twelve-month revenue and $5.88 billion in net income, giving it a profit margin of 6.34%. Tesla trades at a lofty trailing P/E of 235.68 and forward P/E of 156.25, reflecting high growth expectations.
Cash reserves total $36.78 billion, with a relatively low debt-to-equity ratio of 16.82%. Levered free cash flow stands at $1.34 billion, underscoring the balance between growth investments and financial stability.
Market outlook and risks
Despite optimism surrounding Musk’s purchase, analysts remain split. Consensus targets project a 20% decline from current levels, citing weaker EV demand, political controversies, and the loss of certain tax incentives.
Still, with AI, robotics, and autonomous driving at the forefront of Tesla’s strategy, Musk’s confidence could mark a turning point. The coming months, particularly the November shareholder meeting, will be pivotal in shaping Tesla’s trajectory.
