Tesla Inc. (NASDAQ: TSLA) saw its share price surge more than 6% during trading, continuing its recent strong performance. The rise came directly after CEO Elon Musk made a significant stock purchase—his first major acquisition of company shares in five years.
According to a Form 4 filing with the U.S. Securities and Exchange Commission (SEC), Musk purchased 2.57 million Tesla shares in multiple transactions last Friday at prices ranging from approximately $372 to $396 per share, totaling about $1 billion. This acquisition followed a 25% increase in Tesla’s stock price over the past month.
By driving electric vehicles (EVs) into the mainstream, Tesla has disrupted the traditional automotive industry and created substantial wealth for shareholders. As of September 10, the company’s stock had gained 185% over the past five years. A $500 investment five years ago would now be worth $1,424. Although the current share price remains 28% below its December 2024 peak, long-term returns remain notable.
Musk has repeatedly emphasized that investors should focus on Tesla’s long-term technology roadmap rather than short-term weakness in EV sales. He predicts that 80% of Tesla’s future value will come from its Optimus humanoid robot and robotaxi business. Although the exact timelines for fully self-driving technology and robotaxi deployment remain uncertain, market sentiment has been significantly boosted by Musk’s recent stock purchase. Some investors followed suit, further driving up the share price.
Analysts note that Musk’s substantial investment objectively reinforces market expectations for Tesla’s artificial intelligence and robotics potential.
However, high valuation risks cannot be ignored. Tesla currently trades at a price-to-earnings ratio of over 200, reflecting high expectations for the large-scale deployment of robotaxis and the commercialization of humanoid robots—both of which face significant uncertainties. At the same time, the company is grappling with declining revenue and compressed profit margins. In August, its share of the U.S. electric vehicle market fell to its lowest level since 2017.
