Amid announcements of layoffs and reorganization, Tesla Inc (NASDAQ: TSLA) CEO Elon Musk spent about $25 million on 72,500 shares of the company Tuesday and Wednesday, according to a Securities and Exchange Commission filing.
That brings Musk’s stake to 33,737,921 shares worth more than $11.5 billion and 19 percent of the firm. With Tesla shares up about $10 since Musk's purchase, the stake is already about $725,000 more valuable than when Musk bought.
Why It’s Important
Musk’s purchases are rare, but he does have a history of buying shares ostensibly to make a point and convince the Street of his confidence.
Last month, he bought $10 million in the stock, his biggest purchase in over a year, after predicting a short squeeze that would “burn” Tesla’s doubters and short sellers.
“The sheer magnitude of short carnage will be unreal,” Musk tweeted at the time. “If you’re short, I suggest tiptoeing quietly to the exit ... ”
Tesla will soon report its June and quarterly production results, which should serve as the next large planned catalyst.
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Photo courtesy of Tesla.
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