Tesla sharing price jumps as Elon Musk buys over 2.5 million shares worth $ 1 billion

Tesla’s share price rose by more than 3% on Monday after reports were revealed that CEO Elon Musk bought more than 2.5 million shares worth about $ 1 billion. Tesla’s share price closed 3.63% higher at $ 410.26, and appreciated the manufacturer of electric vehicles at $ 1.28 trillion. According to a regulatory filing, Musk obtained the shares in several parts at different prices on Friday. The purchase is interpreted by investors as a sign of the billionaire’s confidence in the company’s long -term prospects, Reuters reported. Earlier this month, Tesla unveiled a proposed payment package for Musk that could make it the world’s first trillionaire, which depends on achieving a series of highly ambitious performance goals over the next decade. As set out in the regulatory filing, Tesla plans to grant Musk shares equal to as much as 12% of the company’s equity in 12 separate tranches. Each Tranche will only rest as Tesla with demanding milestones about the production, appreciation of share prices and operating profit, Reuters reports. If approved by shareholders, the plan will be one of the largest executive compensation packages in history-which underlines both Musk’s influence and Tesla’s high growth course. The company’s annual shareholders’ meeting is scheduled for November 6, where investors will vote on the proposal. The Tesla share price performance Tesla share price has delivered strong profits in recent months, despite the slowdown of sales this year -partly attributed to political controversies around Musk’s agreement with US President Donald Trump and rising competition from Detroit car manufacturers as well as Chinese opponents. Tesla’s share price has advanced 24% and 24% over the past month by 24%. The shares of EV Maker rise by 8% year to date (YTD), while the Tesla share price has risen by 81% over the past year. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions.