Rabat – Elon Musk has purchased about $1 billion worth of Tesla stock in open-market transactions, buying approximately 2.57 million shares at prices between $372.37 and $396.54 per share.
This was his first open‐market share purchase since early 2020, increasing his stake slightly and sending a clear signal he is putting more of his own money into Tesla. Prior to this purchase, Musk owned around 13% of Tesla.
Market reaction and strategic context
Shares of Tesla rose about 6% in early trading after the news broke. By the end of the trading day, the stock had also posted gains, helping it move into positive territory for 2025 after being down earlier in the year.
The purchase happened as Tesla is under pressure from softening demand for electric vehicles, increased competition, and internal concerns about margins.
It also comes just after Tesla’s board proposed a very ambitious compensation plan for Musk, potentially worth $1 trillion if a series of performance and market‐value milestones are met.
Musk has also pushed for greater control over Tesla. The stock purchase is seen as part of his efforts to increase voting power and commit more fully to Tesla’s long‐term strategy.
Ongoing challenges
Even with the recent gains, Tesla’s stock had underperformed relative to other major tech and growth companies in 2025 up until this point.
The company faces ongoing challenges such as weaker EV demand in some markets, margin pressures (costs rising or revenue falling faster than costs), and strong competition from both established automakers and newer entrants, especially in China.
While investor sentiment improved with Musk’s purchase, meeting the performance targets tied to the new compensation plan is a high bar. Whether Tesla can deliver on those goals remains to be seen
Analyst forecasts and valuation signals
Even with Musk’s $1 billion share purchase, many financial analysts warn that Tesla’s valuation already assumes significant future growth, especially in autonomous driving, robotics, and energy sectors.
According to a report by The Motley Fool, Tesla’s earnings per share (EPS) over the past four quarters are approximately $1.67. Following the stock’s rise after the disclosure, Tesla was trading at a price-to-earnings ratio of nearly 250 times.
This high PE ratio suggests that investors are pricing in not only current automotive profits, but also large contributions from other lines of business in the coming years.
In addition, analysts are projecting mixed to modest revenue and delivery trends for 2025. One consensus estimate from FactSet, reported ahead of Q2-2025 earnings, predicted a revenue drop of about 13% year-over-year, and EPS declining to around $0.39 per share, compared to a higher value in the prior year.
Some analysts have lowered their price targets for Tesla shares, given challenges such as weakening EV demand in North America and Europe, and pressure from competitors.
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