Elon Musk, the Tesla CEO, invests a massive billion dollars in Tesla shares.
Elon Musk, the CEO of Tesla, has made a significant investment in his own company, purchasing 2.5 million shares of Tesla worth approximately $1 billion. This marks the tech mogul's first stock purchase for Tesla since 2020.
The purchase, made on Friday and announced on Monday, comes at a time when Musk is shifting Tesla's focus towards robotaxis and humanoid robots. This move is in line with Musk's long-term goal of securing a 25% stake in Tesla, a move aimed at solidifying his position in the company.
Musk's decision to invest in Tesla comes amidst a challenging year for the company. Tesla's stock price dropped significantly this year, partly due to setbacks in deliveries. However, the stock market saw a surge of around six percent following Musk's purchase, indicating a renewed confidence in the company.
Tesla's current market value is approximately $1.3 trillion, but Musk's new compensation package, which will be voted on by shareholders in November, could potentially increase his stake further. If Tesla's stock market value increases to $8.5 trillion within the next decade, Musk could receive additional shares worth $1 billion.
Musk's focus on robotaxis and humanoid robots places Tesla in a competitive field. Established players such as Waymo, Volkswagen and its partners, Chinese companies like Pony.ai and AutoX, Cruise, Motional, Zoox, and the European start-up Wayve, which plans driverless robotaxis in London from 2026, are among Tesla's main competitors.
However, Tesla's cost advantage and full autonomy system give it a competitive edge. The company is currently experimenting with limited robotaxi pilots, and while both robotaxis and humanoid robots are still in their early stages for Tesla, Chairwoman Robyn Denholm has emphasized that Tesla can only overcome challenges with Musk at the helm.
In the past, Musk has sold shares to fund the acquisition of Twitter (now X). However, his recent purchase suggests a renewed commitment to Tesla, a company he co-founded in 2003 and has led through its meteoric rise to become one of the world's most valuable companies.
Musk currently owns around one fifteenth of Tesla, which is valued at around $250 billion. His latest investment underscores his belief in Tesla's potential and his dedication to steering the company towards a future of autonomous transportation and advanced robotics.
Read also:
- Quantum Computing Market in the Automotive Sector Forecast to Expand to $6,462.13 Million by 2034
- List of 2025's Billionaire Video Game Moguls Ranked by Fortune
- VinFast Accelerates Globally, Leveraging Vingroup's Technological and Financial Foundation
- Transformation of Decarbonization Objectives in the Iron Ore Pellets Sector
