The purchase was made on Friday and disclosed in a regulatory filing Monday, is notable because CEOs seldom buy their company’s stock outright rather than through stock options which typically allow purchases at steep discounts.

News of the buy sent Tesla shares up 7% at Monday’s open before settling with a 4% gain by the close. This rebound was enough to erase Tesla’s year-to-date losses, which at one point has reached 42% from the end of 2024.

“It’s a huge vote of confidence from Musk and the bulls love seeing this”, said a Wedbush Securities analyst, Dan Ives, he known for his bullish stance on Tesla. “It sends a positive signal after a very tumultuous year for Musk and Tesla shareholders”.

For Musk, the outlay amounts to a symbolic show of support rather than a financial strain. Already the world’s richest person, his net worth rose by an estimated $5.8 billion on Monday alone thanks to Tesla’s stock rally more than covering the cost of the purchase.