Tesla CEO Elon Musk has purchased about $1 billion worth of Tesla stock, sparking a sharp rise in the company’s share price.
According to a filing with the U.S. Securities and Exchange Commission (SEC), Musk acquired 2.57 million shares on Friday, with prices ranging from $371 to $396 per share. The move pushed Tesla’s stock up six percent on Monday.
The purchase comes just weeks after Tesla unveiled a new compensation proposal for Musk, one that could potentially exceed $1 trillion if the company achieves massive growth from future technologies.
Tesla chair Robyn Denholm, a close ally of Musk, has been defending the package in recent media interviews. “He is a generational leader,” Denholm told Bloomberg TV. “There aren’t any other people out there like Elon who can actually lead the company over the next decade or so.”
The plan, if approved, could give Musk up to 12 percent more ownership of Tesla.
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To unlock the full payout, Tesla would need to hit a staggering $8.5 trillion market capitalization by 2035. The shareholder vote is scheduled for November.
Currently, Tesla’s valuation sits just above $1 trillion—well below its peak—after recent earnings struggles and mounting criticism of Musk’s political stances, which analysts say have dented sales in key markets.
The company is also appealing a Delaware court ruling that struck down a previous 2018 pay package worth $55.8 billion.