Tesla Inc. shares surged back into positive territory for 2025 after CEO Elon Musk made a bold $1 billion personal investment in the company’s stock, underscoring his confidence in the electric vehicle maker’s long-term vision despite a turbulent year marked by slowing sales, increased competition, and policy headwinds.
A regulatory filing published Monday, September 15, 2025, revealed that Musk purchased the shares on September 12 through a revocable trust, marking his first open-market acquisition of Tesla stock since February 2020. The timing of the purchase is significant, coinciding with Tesla’s board deliberations over a potential record-breaking compensation plan that could ultimately grant Musk stock awards worth up to $1 trillion, contingent on Tesla achieving aggressive performance and valuation milestones.
The market responded swiftly. Tesla stock jumped 6.2% in early trading on Monday before closing at $417.89, leaving the stock up roughly 4% year-to-date. This was a dramatic turnaround from earlier in 2025, when Tesla shares plunged as much as 45% by April. The steep decline had been driven by disappointing delivery figures, shrinking market share, and intensifying global competition in the EV space. Musk’s investment was widely interpreted as both a personal vote of confidence and an effort to reassure investors rattled by months of volatility.
Musk’s move also comes against the backdrop of his prior divestments. In 2022, he sold over $20 billion worth of Tesla stock to help finance his acquisition of Twitter (now X), a decision that sparked criticism from shareholders concerned about divided attention and financial strain on Tesla. His latest purchase therefore sends a message of renewed alignment with Tesla’s long-term prospects at a time when investor confidence has been fragile.
Headwinds Remain
Despite the rally, Tesla continues to face major challenges. Global vehicle deliveries fell 13% in the first half of 2025, with data from Cox Automotive showing Tesla’s share of the U.S. electric vehicle market slipping below 40% in August. In Europe, demand has softened, while shipments from Tesla’s Shanghai gigafactory slumped in July and August due to weaker demand in China and supply chain bottlenecks.
Adding to these pressures, U.S. federal incentives for EV purchases are set to expire at the end of September. Musk himself has warned that the phaseout could result in “a few rough quarters” before Tesla begins to reap substantial revenue from its next-generation initiatives, including robotaxi fleets and humanoid robotics — both of which are central to Tesla’s ambitions to evolve beyond vehicle manufacturing into a diversified technology powerhouse.
Board and Investor Sentiment
Despite the uncertainty, Tesla’s board has remained firmly behind Musk. Board Chair Robyn Denholm recently called him a “generational leader,” stressing his ability to guide Tesla through its transition into a broader technology-driven enterprise. Denholm also dismissed concerns that Musk’s controversial political engagements could distract from Tesla’s strategic direction, stating that his personal views should not be conflated with corporate priorities.
Still, Musk’s presence at a London rally organized by far-right activist Tommy Robinson drew criticism in the United Kingdom. His remarks at the event, which predicted violence in the UK, were condemned by political leaders. A spokesman for Prime Minister Keir Starmer described Musk’s comments as inflammatory and dangerous, highlighting the risks that Musk’s public persona continues to pose for Tesla’s global reputation.
Wealth and Influence
Musk remains the wealthiest individual in the world, with an estimated net worth of $419 billion according to the Bloomberg Billionaires Index. His fresh $1 billion bet on Tesla not only boosts his already significant stake but also underscores his belief in the company’s resilience and growth potential. For investors, the move has been interpreted as a powerful signal that Tesla’s founder remains committed to steering the company through a challenging industry cycle and securing its place as a leader in the global energy and mobility transition.
By reasserting his personal stake in Tesla at a moment of vulnerability, Musk has effectively reset the narrative around the company. The coming months will reveal whether this display of confidence will be enough to sustain momentum as Tesla navigates weaker sales, diminishing incentives, and rising competition in an increasingly crowded EV marketplace.
