Elon Musk spends nearly $1 billion buying more Tesla shares
Elon Musk has just spent nearly $1 billion to buy more Tesla shares, consolidating control as the company aims to become a technology conglomerate.
Big deal sends Tesla shares soaring
According to a filing with the regulatory agency, Elon Musk bought 2.57 million Tesla shares at prices ranging from $372.37 to $396.54 per share. The total value of the transaction is nearly $1 billion, helping Tesla shares increase more than 8% in the pre-market trading session earlier this week. Previously, on Friday, the company's shares also increased more than 7%, extending the streak of consecutive price increases.
Musk currently holds about 13% of Tesla shares, but he has repeatedly requested to increase his voting percentage to 25% to ensure influence in important decisions.
This billionaire even warned that he would develop artificial intelligence and robot products outside of Tesla if he did not achieve the desired control.
Tesla turns to technology
Musk's move comes as Tesla attempts to reshape itself from an electric car maker to a technology company, with a focus on robotaxis, 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 cars.
Earlier this month, Tesla's board of directors proposed a $1 trillion compensation package for Elon Musk, a move that shows strong confidence in his leadership abilities.
President Robyn Denholm said Musk has returned to focusing on running Tesla after a long period of political activities and public controversy with Donald Trump, factors that raised concerns about distraction and impact on sales.
Challenges ahead
Despite the board's support, Tesla still faces many challenges: increasing competition from other electric car companies, fluctuating market demand and controversy surrounding Elon Musk's political statements.
However, the move to spend billions of dollars to buy more shares shows that he is still determined to stick with and increase his power in Tesla.