On 15/9, Tesla CEO Elon Musk announced a $1 billion purchase of the electric vehicle company's stock. Filings revealed that Musk bought 2.57 million Tesla shares on 12/9, at prices ranging from $296 to $372 per share.
This news comes at a critical juncture for Tesla, as the company grapples with slowing electric vehicle sales while pivoting towards ambitious goals in AI and humanoid robots.
The move also follows just a week after Tesla's board of directors proposed a $1 trillion compensation package for the billionaire. Under the proposal, Musk could receive up to 12% of Tesla's shares if he helps the electric car maker achieve a market capitalization of $8.6 trillion within the next 10 years.
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Elon Musk in Washington on 20/1. Photo: AP |
Elon Musk in Washington on 20/1. Photo: AP
This latest move underscores the billionaire's confidence in the company's future. "This is the clearest signal yet that Musk is fully back on board with Tesla. The relationship seems to be back on track after the turbulence earlier this year," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.
Elon Musk continues to seek a larger stake and more voting power within Tesla. He previously stated that he would develop AI and robot products at another company if not granted 25% of the voting rights at Tesla. As of the end of last year, Musk owned 13% of the electric vehicle company.
Tesla's stock rose for the third consecutive trading session following the news. Overall, the stock is up 8% year-to-date.
Tesla's latest financial report shows that the company is still under pressure on profits. Demand for electric vehicles is weakening, while costs and competition are increasing. Tesla delivered only 384,000 vehicles in Quarter II, a 14% decrease compared to the same period last year.
Despite this, Tesla Chair Robyn Denholm on 12/9 dismissed concerns that Musk's political activities were impacting the company's revenue. Denholm stated that Musk was "returning to a central role" at Tesla after months of working for the White House.
CEO Elon Musk plays an irreplaceable role at the electric vehicle company. He has transformed Tesla from a startup into the world's most valuable car company, scaling production, expanding globally, and driving the electric vehicle industry forward. For years, the billionaire has also been considered the face of the company.
Ha Thu (Reuters)
