Elon Musk purchases $1 billion in Tesla stock in September 2025
Elon Musk, the world's richest person, spent $1 billion of his personal wealth to buy 2.6 million Tesla shares in September 2025, marking his first such purchase since 2020. The move signaled strong confidence in the company's future, particularly in autonomous technologies, and helped Tesla stock recover from earlier losses. Shares hit a new 2025 closing high amid optimism about robotaxis and humanoid robots.
Tesla has faced a challenging 2025, with shares nearly doubling after Donald Trump's November 2024 election win due to Musk's support, only to crater by March amid backlash over his political involvement and role in the Department of Government Efficiency (DOGE). The company recorded its steepest sales drops in the first and second quarters, exacerbated by plummeting European sales linked to Musk's early participation in Trump's presidency and competition from China's BYD.
Musk's September purchase of 2.6 million shares, worth about $1 billion, came as Tesla leaned into autonomous driving and robotics. As the CEO with a net worth of $488.1 billion on October 3, 2025, Musk's investment boosted shares by 4%, erasing recent losses and turning the stock positive year-to-date, up roughly 3%. The stock closed at a new 2025 high of $434.21, up 1.9% that day, and has risen over 30% in the past month and more than 70% since Musk left Washington, D.C., and paused plans for a third political party.
Analysts praised the signal. Wedbush Securities' Dan Ives said it “sends a positive signal after a very tumultuous year for Musk and Tesla shareholders.” Piper Sandler's Alexander Potter raised his price target to $500 from $400 after visiting China, noting Chinese EV makers like Xiaomi, Li Auto, and Leapmotor look to Tesla for AI and self-driving guidance. He quoted one: “without Tesla going from 0 to 1, we can't go from 1 to 100.” Morgan Stanley's Adam Jonas maintained an Overweight rating with a $410 target, estimating that converting 1% of the U.S. labor force to Tesla's Optimus humanoids could add $100 per share.
Tesla's board proposed a nearly $1 trillion compensation package for Musk over 10 years, targeting an $8.5 trillion market cap through robotaxi and humanoid robot growth. Robotaxis launched in June in Austin, Texas, with expansion planned to Nevada, though regulatory hurdles persist in California. Musk touted Optimus, saying on the 'All-In' podcast: "Optimus is going to be the greatest product in the history of humanity," predicting 80% of Tesla's value from robots. The $7,500 U.S. EV tax credit ended September 30, sparking a 7% sales climb in Q3, though Q4 drops are possible. Wall Street ratings: 27 Buy, 19 Hold, 5 Sell.