American billionaire and Tesla CEO Elon Musk bought 2.57 million shares in the company worth approximately one billion dollars (CZK 20.6 billion). This was reported by the CNBC news server, citing today’s report from the US Securities and Exchange Commission (SEC). According to data from Verity, this is Musk’s largest purchase of Tesla shares to date in terms of value. Following the announcement, the company’s shares rose by more than six percent on the New York Stock Exchange.
Largest purchase of Tesla shares
According to Verity, Musk last bought Tesla shares on the stock exchange in February 2020, when he purchased approximately 200,000 shares for ten million dollars. Prior to Friday’s purchase, the Tesla boss owned approximately 13 percent of the company.
According to Wedbush analyst Dan Ives, Musk’s purchases are a sign of confidence and show that the billionaire is increasing his bet on artificial intelligence at Tesla. He also believes they are an encouragement to investors who are betting on the carmaker’s share price to rise.
Tesla’s context and challenges
The company recently announced that it will ask shareholders at its November general meeting to approve a new compensation package for Musk worth up to $975 billion, depending on the achievement of various corporate goals.
Tesla has been struggling with declining sales in recent months. It faces competition from Chinese manufacturer BYD in European markets and changes in subsidy policy in the United States. Nevertheless, the company’s shares have risen by more than 25 percent in the last three months.
At the beginning of the year, the British economic daily Financial Times noted that the decline in Tesla car sales across Europe came at the same time as Musk became involved in the election campaign in Germany, where he supported the Alternative for Germany (AfD) party, which is considered far-right. The brand’s reputation has also been damaged by his provocative statements, involvement in American politics, and relations with the administration of US President Donald Trump.
Tesla was founded in 2003. Under Musk’s leadership, it has become one of the world’s leading manufacturers of electric cars. In recent years, the company has been trying to expand its activities beyond the automotive sector, including the development of robotic systems and energy.
Source: ČTK
