Elon Musk Just Spent $1 Billion on Tesla Stock: Here’s What This Means for Investors
Written by
Travis Woods
Edited by
Jenna Klaverweiden
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Electric vehicle (EV) automaker Tesla (TSLA) has had a decidedly tumultuous year. It’s been in the news for many reasons, including sales and stock drops, as well as CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE).
And one of Musk’s latest actions has brought it back into the spotlight. Here’s a look at Tesla’s 2025, including Musk’s recent move and how it could impact investors.
Tesla’s Rocky 2025
As CNN reported, Tesla shares almost doubled after the November 2024 presidential election win of Donald Trump, as Musk’s close friendship and support of then President-elect Trump indicated a promising future for the company.
However, following record highs in December 2024, Tesla’s stock price quickly cratered by March 2025. The reason? Both Tesla and Musk himself suffered significant backlash related to Musk’s controversial involvement in politics and DOGE.
In fact, Tesla incurred its most precipitous sales drop ever in its first and second quarters of 2025, per CNN.
Musk’s Latest Move
That said, while Musk’s political leanings may have had a negative impact on the Tesla brand this year, his incredible wealth has also come to the company’s rescue.
Musk is the richest person in the world, with a net worth of $488.1 billion as of Oct. 3, 2025, meaning that he could rather easily afford to spend $1 billion of his own personal wealth to purchase additional shares of Tesla stock — which is exactly what he did in September 2025.
While a CEO using their own money to buy up their own company’ stock (without utilizing stock options) is rare, well, so is Musk’s wealth. As CNN reported, the move greatly helped the somewhat ailing auto manufacturer.
News of Musk’s purchase helped boost Tesla shares by an overall 4%, which eradicated Tesla’s tough stock losses of late. As Dan Ives, a tech analyst with Wedbush Securities put it, the move “sends a positive signal after a very tumultuous year for Musk and Tesla shareholders.”
What Does It Mean for Investors?
Musk’s noteworthy investment shows stockholders the high degree of confidence he has in Tesla’s brand and future — and will likely continue to inspire others to follow his investment lead. As a result, Tesla investors could expect the slight but healthy increase in Tesla’s valuation to continue.
Further, the $7,500 tax credit for American EV buyers came to an end on Sept. 30, which was expected to increase sales of Tesla vehicles prior to the tax credit cutoff. In fact, The New York Times reported that its sales climbed 7% as the credit was approaching its end. That sales spike could provide a boost to third quarter Tesla numbers, providing additional gains to the EV automaker’s stock worth.
Keep in mind, however, that following that spike, sales could drop off in the fourth quarter, which could lead to one last stock drop for the sturdy-but-embattled Tesla in 2025.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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