AI-Summary – News For Tomorrow
Elon Musk’s recent $1 billion purchase of 2.57 million Tesla shares, his first open market buy since February 2020, boosted the company’s stock. Traders saw this significant insider acquisition as a sign of confidence from Musk. This is his largest purchase ever by value. The purchase occurred amidst Tesla facing challenges like slumping sales and the end of EV incentives, factors partly attributed to Musk’s political activities. Tesla is also seeking shareholder approval for a new performance-based pay package for Musk potentially worth up to $975 billion.
News summary provided by Gemini AI.
Elon Musk, CEO of SpaceX and Tesla, attends the Viva Technology conference at the Porte de Versailles exhibition center in Paris on June 16, 2023.
Gonzalo Fuentes | Reuters
Tesla shares jumped after CEO Elon Musk disclosed Monday his first purchase of the stock in the open market since February 2020.
Musk bought 2.57 million shares at various prices Friday which tallies up to about $1 billion, a significant insider acquisition that traders took as a vote of confidence from the outspoken CEO.
These kinds of purchases are rare for Musk with him last buying about 200,000 shares worth around $10 million on February 14, 2020, according to Verity data. It’s his largest purchase ever by value, according to Verity.
The company earlier this month said it would ask shareholders to approve a new pay package for Musk that could be worth up to $975 billion based on various ambitious milestones. Before the purchases Friday, Musk owned around 13% of Tesla.
Tesla shares this year have been weighed down by slumping sales partly tied to Musk’s political activities hurting the brand, along with the end of certain incentives for electric vehicles by the Trump administration.
The pay package shareholders will vote on in November has an ultimate goalpost of a $8.5 trillion market value. The stock was worth $1.3 trillion at Friday’s close.
