Musk, CEO of Tesla, invests a billion dollars in company stock, significantly boosts wealth as share value surges further
Tesla Stock Surges Following Elon Musk's Significant Investment in TSLA
Elon Musk, the CEO of Tesla, made a substantial investment in the company last Friday, purchasing approximately 2.57 million shares of TSLA stock for around $1 billion. This marks Musk's first purchase of TSLA shares since February 2020.
The stock closed on Monday with an increase of 3.6 percent, reaching $410.04. The trading range for these shares on the day was between $371.90 and $396.36. The purchases were reported to the SEC on Monday, but the reason for Musk's investment remains undisclosed.
The news of Musk's purchases initially led to a rise in TSLA stock on the stock market. However, the stock remained steady after the announcement on Monday. On Friday, TSLA stock increased by more than 7 percent to $395.94, but this increase was not directly related to Musk's purchases.
The value of Musk's total stake in the company increased significantly following the stock increase, adding several billion dollars to his net worth, which currently stands at around $419 billion. At the market capitalization of Tesla on Friday, Musk's new investment represents less than 0.1 percent of all TSLA shares.
In early September, the Tesla board presented Musk with a new bonus package that could secure him additional Tesla shares worth billions of dollars. Despite this new investment, Musk's calculated stake in Tesla was around 13.5 percent as of early September, and his purchase of additional shares on Friday did not significantly increase this stake.
The increase in TSLA stock continued in European trading on Tuesday, with the stock rising by an additional 8 percent to levels close to $430 by around 2 pm. However, this increase did not reach levels far above $420, as seen on the previous day.
It is worth noting that between late 2021 and late 2022, Musk sold TSLA shares worth tens of billions of dollars. The SEC filing does not provide a reason for Musk's purchases this time around.
The recent investment by Musk is a strong show of confidence in Tesla, especially amid previous challenges and declining stock performance earlier in the year. With a market capitalization of around $1.32 trillion after the increase, Tesla continues to be one of the most valuable companies in the world.
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