Tesla chief’s billion-dollar stock grab fuels power play as board backs $1tn pay deal

Elon Musk has poured almost $1bn into Tesla shares in a dramatic bid to strengthen his hold over the electric carmaker, triggering a surge in its stock price and reigniting debate about his grip on the company.

A regulatory filing published on Monday revealed that Musk bought 2.57m shares in open-market transactions last Friday. He paid between $372.37 and $396.54 per share, spending close to $1bn in total. The move boosted Tesla’s share price by more than 8% in premarket trading, marking its third straight session of gains after months of market pressure.

As of December, Musk owned roughly 13% of Tesla, according to LSEG data. He has repeatedly demanded more control, arguing that he needs at least 25% of the voting rights to ensure his vision for Tesla can be executed. Without that, he has threatened to take Tesla’s most valuable innovations—robotics, artificial intelligence and robotaxis—outside the company.

Tesla is currently at a crossroads. Once the undisputed leader of the electric vehicle market, it now faces faltering demand, fierce competition from Chinese rivals and scepticism from investors. Musk’s answer has been to pivot Tesla away from being “just” a car company, and towards becoming a full-blown technology leader in AI and robotics. The billion-dollar share buy reinforces his intention to drive that transformation on his terms.

The timing of the purchase is striking. Only a week earlier, Tesla’s board proposed a compensation package for Musk worth $1tn—a colossal deal that underscores how central he remains to Tesla’s future. Board chair Robyn Denholm called the plan a “huge vote of confidence” in Musk’s leadership, brushing off concerns that his political activity and frequent clashes with Donald Trump had dented the company’s sales.

Musk’s outspoken politics, including months spent at the White House and sharp public fights with Trump, unsettled investors earlier this year. Some feared the distractions would harm Tesla’s brand and weigh further on sales. Denholm insisted those worries were misplaced and that Musk was now “front and centre” at Tesla once more.

Even so, Tesla’s stock has had a turbulent 2025. Despite Friday’s rally, shares remain down about 2% this year. Analysts say the company’s credibility hinges on delivering on Musk’s bold promises in AI and autonomous driving, particularly robotaxis, which he has touted as the key to Tesla’s next chapter.

The billionaire’s latest purchase may reassure some shareholders that he is putting his own money behind those claims. But others see it as part of a continuing power struggle between Musk and Tesla’s board, with his threats to take critical projects elsewhere adding pressure.

For now, the markets appear to approve. Tesla’s sharp rise on Monday follows strong gains last week, suggesting that Musk’s personal show of faith has steadied investor nerves—at least temporarily.

Still, the challenges remain daunting. Global EV demand has cooled, new entrants are eating into Tesla’s market share, and questions linger about whether Musk can juggle Tesla’s transformation while running his other ventures.

What is clear is that Musk has no intention of loosening his grip. His $1bn gamble sends a message as loud as any of his tweets: he wants more power at Tesla, and he is willing to pay dearly to get it.