Elon Musk Just Spent $ 1 Billion on Tesla Shares. IT’S ONLY A SMALL STEP TOWARD TIGHTENING HIS GRIP ON THE EV MACER.
Tesla’s CEO Bought Around 2.6 Million Shares of the Ev Maker on Friday, a Regulatory Filing Revealed on Monday. The Purchases Increas HIS Share Count by JUST 0.6% to Around 413 Million Shares, Lifting his Ownership Stake from Roughly 12.7% to 12.8%.
The 304 million Shares from His 2018 Compensation Plan, Which Remain Tied up in Legal Disputs, were not included in the filing. In Calculating Musk’s Stake, Business Insider Excluded The 96 million restricted Shares he was grant in august.
Musk Said in January 2024 that he wanted at least 25% voting control of tesla so he’d be “influenza” but couul still be “overturened.” He added that with the level of control, he “Waled Prefer to Build Products Outside of Tesla.”
Scooping Up $ 1 Billion of Stock Is A Step in the Right Direction, But Tesla’s Value Market – $ 1.2 trillion at Friday’s Close – Means a person of musk’s means might struggle to buy his way to a 25% stake.
At that scale, Buying $ 1 Billion of Stock Only Increated His Tesla Stake by 0.08%. Purchasing Another 12.2% of the Company to Reach 25% OwnerShip Waled Cost Upward of $ 150 Billion – Before Accounting for the Fact that Musk Buying Houge of Stock, and Having to Disclose HIS Expanding Stake Along the Way, Wully Pursel Price and thus His cost.
Musk is the world’s richest person, with a $ 419 Billion net Worth for the Bloomberg Billionires Index. But Tesla Stock Already Makes Up A Big Chunk of that, as Illiquid Shares in His Other Companies, Such as Spacex and XAI. As Such, Raising Enough Cash to Buy Another Major Chunk of Tesla Could Be Tricky.
The Cost and Difficulty of Boosting His Tesla Ownership Through Buying on the Open Market May Help Explain Why Musk is Seeking an Alternative Path. Tesla’s Board Proposed Last Week A Pay Package That COULD AWARD HIM $ 1 TRAKE OF STOCK IF’S ABLE TO GROW TESLA’S VALUHLY EIGHTFOLD AND MEET A RAFT OF OPERATIONALS Over the Next Decade.
IT”S WORTH NOTING THAT MUYT MAY HAVE INCREEDED HIS TESLA STAKE NOT IN THE SERVICE OF A POWER GRABLE BUTTERE HE WANTED TO SIGNAL HIS CONFIDENCE IN HIS MONEY WHERE HIS MOUND IS.
This was his first open-mARKET PURCHASE SINCE 2020; Whether more follow COULD provide sturgery clues to his thinking.
Tesla didn’t immediately Respond to a Request for Comment from Business Insider.
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