Tesla's stock experienced a significant boost on Monday, climbing 3.6% to approximately $410 per share. This surge was primarily attributed to CEO Elon Musk's recent purchase of roughly $1 billion worth of Tesla stock. The acquisition pushed Tesla's stock into positive territory for 2025, surpassing its closing price of $404 at the end of the previous year. Musk himself acknowledged the rise with characteristic humor on X, referencing a previous prediction.
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A regulatory filing revealed that Musk made 25 separate purchases last Friday, totaling approximately 2.57 million shares at prices ranging from $372 to $396. This significant investment is viewed by many as a strong vote of confidence in Tesla's future, particularly given the company's recent challenges. Tesla has faced headwinds this year, including softening demand for electric vehicles (EVs) and public backlash stemming from Musk's involvement with the Trump administration's efforts to reduce government spending.
Adding to the positive sentiment, Tesla recently proposed a potentially lucrative long-term compensation package for Musk, potentially reaching $1 trillion if pre-defined milestones are achieved. Wedbush analyst Dan Ives, a long-time Tesla supporter, interpreted Musk's stock purchase as a "huge sign of confidence" and an indication of his continued commitment to Tesla's artificial intelligence (AI) initiatives. The market reacted favorably to this show of faith from the CEO, suggesting that investor confidence in Tesla might be recovering. The closing price surge underscores the influence of Musk's actions on investor sentiment and highlights the volatile nature of the stock market, particularly in response to significant news related to influential figures.
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Originally published at: https://www.investopedia.com/tesla-stock-turns-positive-for-2025-as-elon-musk-buys-about-usd1b-of-shares-11809853
