Elon Musk Takes Major Stock Buy Amid Tesla’s Controversial Pay Plan

Andrew J. Hawkins, a seasoned transportation editor with over a decade of experience covering electric vehicles, public transit, and aviation, reports on Elon Musk's latest move in response to Tesla's proposed executive compensation package.

Recently, Elon Musk responded to an unprecedented pay package proposal from Tesla’s board by significantly increasing his stake in the company. He purchased $1 billion worth of Tesla stock through an irrevocable trust on September 12th, as disclosed in a regulatory filing. Following this news, Tesla’s shares rose over 5%, boosting the company's valuation for the year.

This purchase marks Musk’s first open-market stock acquisition of Tesla in more than five years. In 2022, he sold over $20 billion of Tesla shares, coinciding with his acquisition of Twitter. Other Tesla executives and board members have also sold portions of their shares this year, reflecting wider strategic shifts within the company.

The timing of Musk's buy comes shortly after Tesla’s board proposed a lucrative pay package that, if approved, could make Musk the world’s first trillionaire. Achieving this would require Musk to meet challenging milestones, including producing over a million robots and robotaxis, and generating $7.5 trillion in shareholder value.

As Tesla's largest shareholder with a 13% stake, Musk has expressed a desire for greater control to steer the company’s mission, aligning with the board’s plan to incentivize performance.

Tesla’s stock has experienced volatility this year amid growing competition in the EV sector and Musk’s political activities, which have impacted the company's earlier high-flying trajectory. The company’s US EV market share has recently fallen below 40%, as sales slow and new models attract consumers elsewhere.

Musk is betting heavily on artificial intelligence and robotics for Tesla’s future, unveiling a new master plan that shifts focus from traditional electric vehicle manufacturing to advanced automation. Meanwhile, he has warned of potential “rough quarters” ahead, as the US phases out EV incentives, likely leading to further sales declines.

Follow topics and authors from this story to stay updated on Tesla and Elon Musk’s evolving strategies.

Written by Andrew J. Hawkins