Elon Musk, the CEO of Tesla, has acquired nearly $1 billion worth of shares in the electric vehicle maker.
Following this announcement, Tesla’s stock surged by over 8% in pre-market trading on Monday.
As Tesla shifts its focus from solely electric vehicle production to becoming a technology powerhouse, the company is racing to achieve ambitious goals in Robotaxis, Artificial Intelligence, and Robotics. By December, Musk held approximately 13% of the company, according to data from LSEG.
On Friday, Musk purchased 2.57 million shares in open market transactions, with prices ranging from $372.37 to $396.54 per share.
Tesla’s shares increased by over 7% on Friday, building on strong gains from the previous session. Despite a year-to-date decline of around 2%, the stock is poised to achieve profits for the third consecutive session if pre-market trends hold steady.
Musk has persistently sought greater ownership interests, enhanced voting power at Tesla, and has threatened to develop AI and robotics ventures outside of Tesla unless he secures 25% voting power.
Earlier this month, Tesla’s board proposed a trillion-dollar compensation package for Musk, even amidst challenges posed by intense competition and declining electric vehicle demand.
On Friday, Robin Denholm, the board chair, downplayed concerns that Musk’s political engagements were negatively impacting sales, asserting that the billionaire had returned to being “front and center” within the company following his time in the White House.
Musk’s political involvement and public disagreements with Donald Trump have placed pressure on the company’s stock this year, raising investor concerns about potential distractions and declines in sales.
Source: www.theguardian.com
