Elon Musk’s surprising disclosure of his roughly $1 billion Tesla share purchases injected a vote of support in the volatile electric vehicle maker, setting it up for a strong end to a challenging 2025. The electric vehicle maker jumped nearly 6% on Monday after a filing showed Musk bought 2.57 million shares at different prices Friday. That marked his first purchase of the stock in the open market since February 2020. “We see this as a clear signal of confidence from Musk,” said Jed Dorsheimer, analyst at William Blair. “With Musk’s purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish.” TSLA 5D mountain Tesla in the last 5 days The insider buying came after Tesla said it would ask shareholders to approve a new pay package for Musk that could be worth up to $975 billion. “Musk filing adds to Friday’s massive technical breakout; underweight positioning, AI catch up trading, hype around FSD 14, bullish gigafactory demand commentary and the signal of a $1T pay package is a powerful combination into quarter-end,” Morgan Stanley’s trading desk said in a note to clients. Tesla is trying to shake off a tough first half of 2025, as many believe Musk’s political activities hurt the EV brand and negatively impacted sales. Even with Monday’s rally, the stock is up only about 5% this year, significantly underperforming the boarder market and its tech peers. TSLA YTD mountain Tesla year to date Musk spearheaded the budget-slashing Department of Government Efficiency, or DOGE, under President Donald Trump’s second administration. However, he left at the end of May and had a public feud with Trump over the Republican’s spending bill. Wedbush said Musk’s purchase offers more evidence that the outspoken CEO is “past peak political involvement.” The EV stock staged a strong comeback on the back of Musk’s stock purchase. The stock is up more than 20% over the past three trading sessions, each time gaining more than 5%. A close above that level would be its first such streak of 5% gains since July 2024. The insider action “is a huge sign of confidence for Tesla bulls and shows Musk is doubling down on his Tesla A.I. bet,” said Dan Ives, global head of tech research at Wedbush.
Elon Musk’s $1 billion stock buy adds fuel to Tesla rally as analysts cheer the sign of confidence
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