Tesla Shares Surge 8% After Musk Buys $1B in Stock

Lead Tesla shares jumped about 8% in premarket trading on Monday after CEO Elon Musk disclosed an open-market purchase of roughly $1 billion in company stock, signaling renewed investor confidence.

Nut Graf The substantial acquisition-Musk bought 2.57 million shares at prices between $372.37 and $396.54 per share last Friday-comes as Tesla navigates slowing EV demand and ahead of this week’s Federal Reserve policy meeting, underscoring Musk’s long-term commitment to the automaker.

Musk’s Stock Purchase Details

• Musk acquired 2.57 million shares through a revocable trust on September 12 in 26 separate transactions.
• Purchase prices ranged from $372.37 to $396.54, totaling nearly $1 billion.
• The buy marks Musk’s first open-market Tesla share purchase since February 2020.

Market Context and Impact Tesla’s premarket surge built on a 7% gain on Friday, positioning the stock for a third straight day of gains if the rally holds. Wall Street benchmarks opened slightly higher on Monday, with the Dow Jones, S&P 500 and Nasdaq influenced by both Tesla’s jump and anticipation of the Fed’s policy announcement later this week.

Performance Challenges and Outlook Despite Monday’s rally, Tesla shares remain down around 2% year-to-date amid intensifying competition and waning EV subsidies. Investors will look to third-quarter delivery figures due in early October and Q3 earnings on October 21 for further direction. Analysts view Musk’s purchase as a strong vote of confidence that could help stabilize sentiment and support Tesla’s valuation as it pursues ambitious growth and AI-driven initiatives.