Tesla’s (TSLA) shares closed 4% higher on Sept. 15 and turned positive for the year after news broke that CEO Elon Musk bought nearly $1 billion of company stock.
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TSLA stock closed at $410.26, topping its final closing price of 2024. The electric vehicle maker’s shares are now up 85% since hitting a low for the year of $221.86 on April 4 amid the market crash caused by U.S. President Donald Trump’s tariffs. Tesla’s stock has risen 24% in the last month alone.
The latest rally comes on news that Tesla CEO Elon Musk purchased about $1 billion worth of company stock on the open market. It’s the biggest ever purchase of TSLA stock by Musk, and his first on the open market since February 2020. Investors took the stock buy as a vote of confidence on the part of the CEO.
Other Developments
TSLA stock had been rocked by not only President Trump’s tariffs but also reports of the company’s declining electric vehicle sales around the world. In some markets, such as Europe, Tesla’s sales have declined as much as 40% year-over-year. At least some of that decline has been attributed to a consumer backlash against Tesla over Elon Musk’s political activities.
More recently, it has been reported that Tesla’s board of directors has proposed a new pay plan for Musk that could reach $1 trillion over the next decade if certain milestones are reached. The size of the proposed pay package has raised eyebrows among some analysts and investors. Tesla’s efforts to pivot its business to humanoid robots and artificial intelligence have also drawn some doubts.
Is TSLA Stock a Buy?
Tesla stock has a consensus Hold rating among 34 Wall Street analysts. That rating is based on 14 Buy, 13 Hold, and seven Sell recommendations issued in the last three months. The average TSLA price target of $313.62 implies 23.51% downside from current levels.
