Tesla shares soared by 7% at the pre-market in New York on September 15. The excitement among investors was caused by the news that CEO Elon Musk bought the company's securities on the open market for the first time since February 2020.
Elon Musk bought 2.57 million Tesla shares at various prices through a trust on Sept. 12, a disclosure released Monday showed. The purchase amounted to about $1 billion.
This is the largest purchase of Tesla shares by Musk in monetary terms, notes CNBC with reference to data from the consulting company Verity. In general, such purchases are rare for the entrepreneur. The last time he bought shares in February 2020 - then he bought about 200,000 securities for about $10 million.
Investors took it as a signal of confidence from the head of the company in its prospects, notes CNBC. In August, the manufacturer's market share in the U.S. shrank to its lowest level in almost eight years, as buyers preferred competitors' electric cars instead of Tesla's aging lineup.
Musk's deals come a week after Tesla said it would ask shareholders to approve a new compensation package for Musk. It could reach nearly $1 trillion if ambitious targets are met.
This article was AI-translated and verified by a human editor
