Tesla shares saw a significant increase in premarket trading on Monday, September 15, 2025, rising by 6.57% to $421.97. This surge follows CEO Elon Musk's announcement of his first substantial open-market stock acquisition since February 2020. Musk acquired approximately $1 billion worth of Tesla shares on Friday, September 12, 2025, a move widely interpreted as a strong endorsement of the electric vehicle manufacturer's long-term prospects.
Musk purchased around 2.57 million Tesla shares at various price points, marking his largest investment in the company by dollar value to date. This action underscores his commitment to Tesla's strategic vision, which increasingly emphasizes artificial intelligence, robotics, and autonomous driving. The purchase comes ahead of a crucial shareholder vote in November concerning a new compensation package for Musk, which could potentially reach $975 billion if ambitious milestones are met. Prior to this acquisition, Musk held approximately 13% of Tesla's stock.
Market analysts often view insider buying as a positive indicator, suggesting that executives believe the company's stock is undervalued and poised for growth. This sentiment is particularly relevant given Tesla's strategic pivot towards AI and robotics, with Musk projecting that the Optimus robot could account for 80% of Tesla's future value. Despite recent challenges in the automotive sector, including a 13% drop in worldwide vehicle deliveries in the first half of 2025, Tesla's focus on innovation in AI and robotics is seen as a key driver for future expansion.
The proposed compensation package is a testament to the board's confidence in Musk's leadership, tying his remuneration to ambitious performance metrics that include increasing Tesla's market value to at least $8.5 trillion by 2035. This aligns with Musk's bullish outlook on Tesla's prospects, with the company's strategic plan, 'Master Plan Part Four,' emphasizing AI-driven robotics and autonomous systems. The market's positive reaction to Musk's stock purchase reflects a broader investor sentiment that often rewards such displays of insider confidence, especially when coupled with forward-looking strategic initiatives.