Elon Musk responded to Tesla’s board’s proposal for a $1 trillion bonus by buying about $1 billion worth of the company’s shares, sending the stock soaring before the start of trading, Bloomberg reports.
Musk bought the shares indirectly through a revocable trust on September 12, according to a report released Monday. The purchases coincided with an interview with Tesla Chairman Robin Denholm, in which she talked about the benefits of Musk’s compensation package, which could top $1 trillion if the company meets a series of ambitious market value and performance goals.
Tesla shares rose 7.3% in premarket trading. If the gains hold through the regular trading session, the company’s shares will return to positive momentum in 2025, recovering from a 45% drop in early April.
It is noted that this purchase demonstrates Musk’s confidence in Tesla’s prospects after a difficult first half, when global car deliveries fell by 13%.
While Musk has actively promoted the potential of developing robo-taxis and humanoid robots, he has also warned that the company could face “a few difficult quarters” after the US eliminates subsidies for the purchase of electric cars.