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Tesla rebounds 6.2% as Elon Musk deepens stake
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Board weighs $1 trillion compensation package
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UK backlash trails Musk’s political remarks
Elon Musk’s $1 billion Tesla stock purchase has pushed the electric vehicle maker’s shares into positive territory for 2025, reinforcing his confidence in the company despite a turbulent year marked by falling sales and political controversies.
A regulatory filing released on Monday confirmed that Musk acquired the shares on September 12 through a revocable trust, his first open-market purchase of Tesla stock since February 2020.
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The move coincided with Tesla’s board considering a landmark compensation deal that could award him stock valued at around $1 trillion if ambitious performance targets and market capitalisation milestones are achieved.
Tesla shares surged 6.2% in early trading and closed at $417.89 on Monday, lifting the stock about 4% on a year-to-date basis.
This marks a sharp rebound after a 45% plunge earlier in the year, driven by weak vehicle sales and intensifying competition in the global electric vehicle sector.
The rally comes as Tesla continues to grapple with serious headwinds. Global deliveries dropped 13% in the first half of 2025, U.S. market share slipped below 40%, and European sales weakened.
Production in Shanghai also faltered in July and August, while the phasing out of federal incentives for U.S. EV purchases at the end of September is expected to further squeeze sales.
Musk has already warned this could trigger “a few rough quarters” before Tesla’s investments in robotaxis and humanoid robots generate meaningful returns.
Board chair Robyn Denholm has maintained unwavering support for Musk, describing him as a “generational leader” and the right figure to lead Tesla’s transition from automaker to diversified tech company. However, Musk’s recent appearance at a London rally organised by far-right activist Tommy Robinson drew condemnation.
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A spokesman for Prime Minister Keir Starmer labelled his remarks predicting violence in the UK as inflammatory and dangerous.
Despite controversies, Musk remains the world’s richest individual with an estimated net worth of $419 billion, according to the Bloomberg Billionaires Index.
His latest billion-dollar purchase strengthens his stake in Tesla and reassures investors of his long-term commitment to the company’s position in the evolving global electric vehicle market.
