Elon Musk Acquires $1bn in Tesla Shares

CEO Elon Musk has acquired $1 billion worth of Tesla shares, according to a regulatory filing with the Securities and Exchange Commission. The purchase sparked a 6% increase in Tesla’s stock price on Monday.

Musk, who also heads SpaceX and owns the social media platform X, acquired 2.57 million shares of Tesla at prices ranging between $371 and $396 on Friday. 

The acquisition comes amidst discussions about a bold compensation package proposed for Musk, which could potentially be worth over $1 trillion if he successfully drives Tesla’s growth through new technologies.

Musk’s Proposed Compensation Package

The compensation plan, unveiled earlier this month, could see Musk earning up to 12% of Tesla’s total shares if the company reaches a market cap of $8.5 trillion by 2035. 

This ambitious target has sparked debates, but Robyn Denholm, Tesla’s chair and a close associate of Musk, has defended the proposal. 

In a recent Bloomberg TV interview, Denholm said, “He is a generational leader. There aren’t any other people out there like Elon who can actually lead the company over the next decade or so.”

The Bigger Picture

Currently, Tesla’s market capitalisation stands at just over $1 trillion, a decline from its peak following some disappointing earnings reports. 

Analysts point to Musk’s controversial political ties, particularly his support for far-right politicians, as a factor contributing to the stock’s recent slump. This has sparked backlash and led to a drop in sales in key markets.

In addition to the new compensation package, Tesla is also engaged in legal battles. The company is contesting a Delaware court ruling that struck down a previous $55.8 billion pay package for Musk, originally announced in 2018. Shareholders will vote on the new proposal in November.