Elon Musk, the CEO of Tesla, recently bought nearly $1 billion worth of Tesla shares. This move shows his desire for more control over the company. Following the news, Tesla’s stock rose over 8% in premarket trading.
Musk is steering Tesla toward becoming a tech giant, not just an electric vehicle maker. His focus is on innovations like robotaxis and artificial intelligence. As of December, he owned about 13% of the company.
Last Friday, Musk acquired 2.57 million shares at prices ranging from $372.37 to $396.54 each. Tesla’s shares have been volatile. Though they dropped about 2% this year, they have recently shown resilience with a gain of over 7% just a few days ago.
One reason for Musk’s aggressive stock purchases is to increase his voting power within the company. He has expressed frustrations about his current stake and has hinted at developing AI and robotics outside Tesla if his demands aren’t met.
Recently, Tesla’s board backed a massive compensation plan for Musk, valued at $1 trillion. This proposal reflects their confidence in his leadership despite challenges, like rising competition and fluctuating demand for electric vehicles.
Robyn Denholm, the chair of Tesla’s board, downplayed concerns that Musk’s political activities, including his clashes with Donald Trump, were impacting sales. She emphasized that Musk is now fully focused on Tesla after some time spent in the political arena.
This dynamic situation shows how closely Musk’s decisions can influence Tesla’s stock and future. As Musk continues to push for more control and modernization, the investment community is watching closely.
In recent surveys, a growing number of investors express concerns about Musk’s distractions potentially affecting Tesla’s performance, highlighting the tension between innovation and stability within the company.
For those interested in Musk’s leadership and Tesla’s future, this story illustrates the stakes and transformations underway in the electric vehicle sector. You can find more information on this topic in reliable sources like the Guardian.
