Elon Musk’s Tesla Stock Buy Triggers Rebound but Sparks Fresh Volatility

Elon Musk’s recent ‘round-trip’ move in Tesla (TSLA) has reignited investor debate over both his commitment to the company and the path forward for its ambitious goals.

Through a trust, Musk disclosed the purchase of roughly 2.57 million shares of Tesla, a deal worth nearly US$1 billion, with share prices ranging between $372 and $396. 

Musk’s Tesla Buy Sparks Gains, Then Volatility

The announcement fueled a sharp rebound in Tesla’s stock, with shares rising more than 7% in pre-market trading, seen by many as a strong signal of confidence from Tesla’s own chief executive.

But the momentum proved fragile. As broader tech markets weakened, TSLA slipped back below $400, wiping out its recent gains. That volatility reflects a tug-of-war in market sentiment.

Musk’s insider buy signals strong confidence in Tesla’s long-term roadmap, but skeptics remain focused on the company’s near-term fundamentals and the weight of his aggressive compensation plan.

Also Read: Elon Musk Hints at Tesla's ‘Terafab’ AI Chip Plant, Considers Partnership with Intel

Can Tesla Truly Deliver Musk’s Moonshot Vision?

That deal, approved by over 75% of shareholders, could pay out up to US$1 trillion, contingent upon Tesla hitting ambitious milestones, including an $8.5 trillion market cap, 20 million vehicle deliveries annually, one million robotaxis, and a million Optimus humanoid robots. 

For many investors, Musk’s purchase and his locked-in pay package amount to a vote of confidence in Tesla’s future, not just as a carmaker, but as a major player in AI, autonomous transport, and robotics. 

Yet even as some analysts, like Wedbush’s Dan Ives, call the package a ‘green light’ for Tesla’s AI future, others caution about the execution risk. Musk’s commitment may be clear, but whether Tesla can deliver on its moonshot goals remains the market’s biggest question.