Tesla’s shares climbed over 3% on Monday, closing at $410.26, after CEO Elon Musk purchased more than 2.5 million shares valued at roughly $1 billion. The acquisition, revealed in a regulatory filing, was executed across multiple transactions on Friday.
The rally boosted Tesla’s market capitalization to $1.28 trillion, reinforcing investor confidence in the electric vehicle (EV) maker’s long-term prospects. Market analysts view Musk’s buy-in as a strong signal of his commitment to the company’s future growth.
Earlier this month, Tesla also proposed a new executive compensation plan for Musk, potentially granting him shares equal to 12% of the company’s equity. The package, subject to shareholder approval on November 6, would vest in 12 tranches, each tied to ambitious milestones in production, market capitalization, and profitability. If approved, it would mark one of the largest executive pay deals in corporate history.
Despite slowing sales and rising competition from U.S. and Chinese automakers, Tesla shares have gained 24% in the past month and 72% over the last six months. Year-to-date, the stock is up 8%, with an impressive 81% surge compared to last year.
On the broader market front, U.S. indexes closed higher on Monday, with both the S&P 500 and Nasdaq hitting record intraday levels. Alphabet (Google’s parent company) also soared to a $3 trillion market cap, while investors turned their attention to the upcoming Federal Reserve meeting on September 16–17, where a 25-basis-point rate cut is widely expected.
Tesla’s rally contributed to a 1.1% rise in the S&P 500’s consumer discretionary sector, its strongest level in nine months, while Alphabet drove a 2.33% gain in communication services stocks.