TLDR
- Elon Musk bought $1 billion worth of Tesla shares on September 12, purchasing 2.57 million shares
- The purchase raised Musk’s Tesla ownership to 13%, adding confidence before November’s compensation vote
- Tesla stock jumped 9% in premarket trading following the disclosure of Musk’s billion-dollar investment
- New CEO pay package worth up to $1 trillion awaits shareholder approval in November
- Analysts see Tesla’s AI and robotaxi expansion as a major growth opportunity
Tesla stock surged in premarket trading after Elon Musk disclosed a $1 billion share purchase. The Tesla CEO bought 2.57 million shares on September 12 at prices between $372 and $396.
This purchase increased Musk’s Tesla ownership to approximately 13%. His total holdings now include around 413 million shares, excluding stock options.
The timing proves interesting as Tesla shareholders prepare for a November vote. A new compensation package for Musk could reach $1 trillion if performance targets are met.
Tesla shares jumped 9% in premarket trading Monday following the SEC filing disclosure. The stock has gained 13% over the past week and 60% over six months.
AI Strategy Drives Investor Interest
Wedbush analyst Dan Ives believes artificial intelligence is fueling Tesla’s recent momentum. He sees Tesla positioned as a leader in the autonomous vehicle market.
Tesla launched its robotaxi service in Austin, Texas in June. The company recently received approvals for self-driving tests in Las Vegas.
Ives expects Tesla to expand robotaxi operations to 30-35 US cities within a year. He values this AI opportunity at $1 trillion for Tesla.
The analyst maintains a $500 price target, the highest on Wall Street. Average analyst targets sit around $318 per share.
Tesla faces competition from tech giants investing heavily in AI. Amazon owns Zoox, while Alphabet controls Waymo in the autonomous vehicle space.
Performance Metrics and Market Position
Tesla sold 721,000 vehicles in the first half of 2025, down 13% year-over-year. Despite lower sales, investors focus on AI potential rather than current delivery numbers.
The company’s robotaxi expansion comes as federal EV tax credits expire. The $7,500 purchase credit ends September 30, potentially driving near-term sales.
Tesla stock was down 2% year-to-date before Monday’s gains. The shares have climbed 72% over the past 12 months.
Only 44% of analysts rate Tesla stock a buy, compared to 55% for average S&P 500 companies. This suggests mixed Wall Street sentiment despite recent gains.
Compensation Package Details
The November shareholder vote centers on Musk’s new pay package. Performance targets include growing Tesla’s market value above $8 trillion and selling one million robots.
Success would increase Musk’s voting control to 25-29%. He previously stated he needed 25% ownership to pursue Tesla’s AI expansion plans.
Musk has controlled Tesla since 2008 and views this compensation structure as essential for the company’s future. The package ties his rewards directly to Tesla’s growth milestones.
Technical traders point to momentum carrying Tesla past spring highs. Strong August EV sales data and robotaxi approvals support the recent rally.
