Elon Musk spent nearly $1 billion buying more Tesla shares.
Elon Musk has just spent nearly $1 billion to buy more Tesla stock, consolidating his control as the company aims to become a leading technology conglomerate.
Large transaction causes Tesla stock to surge.
According to filings with regulators, Elon Musk purchased 2.57 million Tesla shares at prices ranging from $372.37 to $396.54 per share. The total value of the transaction was nearly $1 billion, causing Tesla's stock to rise more than 8% in pre-market trading at the start of the week. Prior to that, on Friday, the company's stock had also risen more than 7%, extending its streak of consecutive gains.
Musk currently holds approximately 13% of Tesla's shares, but he has repeatedly requested an increase in his voting stake to 25% to ensure he has influence over key decision-making.
The billionaire even warned that he would develop artificial intelligence and robotics products outside of Tesla if he didn't achieve the control he desired.
Tesla shifts its focus to technology.
Musk's move comes as Tesla attempts to reshape itself from an electric vehicle manufacturer into a technology conglomerate, focusing on robotaxi, artificial intelligence, and robotics. This is seen as a strategy to maintain its leading position in the face of fierce competition and slowing demand for electric vehicles.
Earlier this month, Tesla's board of directors proposed a $1 trillion compensation package for Elon Musk, a move that demonstrates strong confidence in his leadership abilities.
Chairwoman Robyn Denholm said Musk has returned to focus on running Tesla after a long period of political activity and public disputes with Donald Trump, factors that had raised concerns about distraction and impact on sales.
Challenges ahead
Despite support from its board of directors, Tesla still faces numerous challenges: increasing competition from other electric vehicle manufacturers, volatile market demand, and controversies surrounding Elon Musk's political statements.
However, the move to spend billions of dollars buying more shares shows that he remains determined to stay involved and increase his power within Tesla.
