Musk splurges $1 billion to buy back TSL shares, stock price soars in pre-market.

This is his first time increasing his stake in Tesla on the public market since 2020, attracting strong market attention.

TSL stock price surged before the market opened, with Musk becoming the largest buyer.

Elon Musk, the CEO of Tesla, has once again become the center of attention in the market, this time not for rockets or AI, but for his nearly $1 billion share buyback in the open market. According to the Form 4 document released by the U.S. Securities and Exchange Commission (SEC) on September 15 (Monday), Musk purchased over 2.5 million shares of Tesla common stock on September 12 in a single day, and the news immediately drove Tesla's pre-market stock price to surge.

This is the first time Musk has bought TSL shares on the open market since February 2020, highlighting his confidence and commitment to the company's future.

Buy in batches, with an average price of about 380 dollars.

According to detailed disclosures in SEC filings, Musk's recent purchase was made in multiple transactions, with the buying price ranging from $371.38 to $396.54 per share. These shares were acquired through Musk's personal trust — Elon Musk Revocable Trust, with the number of shares purchased ranging from several thousand shares in a single transaction to over 330,000 shares in another, totaling more than 2,500,000 shares.

The average price of these trades is around 380 dollars, compared to the fact that TSL's stock price was in a correction phase at the time, which is undoubtedly a counter-trend operation.

Total shares held exceed 413 million, demonstrating long-term confidence.

After the purchase was completed, Musk held a total of over 413 million shares of TSL through a trust. It is worth noting that these shares are all held indirectly, indicating that Musk is managing risks and taxes through the trust in his asset allocation, while also demonstrating his firm belief in the long-term growth of TSL.

Does this action have anything to do with the previous 10b5-1 plan?

This purchase action was not marked as being conducted according to Rule 10b5-1(c); this means Musk is entering the market based on personal decision, rather than a predetermined automated trading plan. Such actions will make investors feel Musk's "endorsement" of the current TSL stock price, thereby boosting market confidence.

Market Interpretation: Is TSL's Value Undervalued?

Investors and analysts generally view this buyback as a "super bullish" signal. Musk himself has also entered the market several times during periods of low stock prices, such as during several key moments in 2018 and 2019. His purchases are often seen as indicators of value bottoms. This time, spending nearly $1 billion further highlights Musk's strategic ambitions for the company's future development, particularly in the fields of AI, autonomous driving, and energy.

What should investors pay attention to?

Although Musk's buying action can be seen as a demonstration of confidence, attention must still be paid to future market fluctuations, macroeconomic conditions, and the Federal Reserve's interest rate policy pressures on tech stocks. In addition, TSL is currently facing fierce competition from China and traditional car manufacturers, as well as expectations and challenges regarding the production progress of Cybertruck and the new generation battery technology.

Elon Musk votes with money, is the market following suit?

For many retail and institutional investors, Musk's purchase is not just a simple shareholder action, but a market signal. He expressed with cash: "TSL is worth investing in," will this trigger a wave of follow-up? A short-term rebound in stock prices is expected, while the long-term performance will depend on whether TSL can carry this confidence in terms of products and revenue.

This article reports that Musk has spent $1 billion to buy back TSL stocks, causing the stock price to surge before the market opens. It first appeared on Blockchain News ABMedia.