This analysis delves into the most substantial market-open insider stock transactions for Tesla Inc. since its public debut in 2010. The recent acquisition of more than 2.57 million shares by Elon Musk, valued at approximately $1 billion, stands out as a landmark event. Beyond this notable trade, the article highlights other significant insider purchases by key figures such as Larry Ellison and Joe Gebbia. These transactions offer insights into the confidence and strategic moves of the company's leadership and prominent stakeholders. The context of these insider buys is further enriched by considering Tesla's recent performance, including strong third-quarter sales projections and discussions surrounding Musk's executive compensation structure, which could potentially elevate him to the status of the world's first trillionaire.
Elon Musk's latest investment in Tesla, involving over 2.57 million shares at a cost exceeding $1 billion, represents the largest single market-open insider purchase in the company's history since its initial public offering in 2010. This substantial commitment underscores Musk's ongoing belief in the electric vehicle manufacturer's trajectory and future potential.
Prior to this recent transaction, Musk has a documented history of making significant personal investments in Tesla. In June 2018, he acquired more than 72,506 shares across various price points, amounting to $25 million. A month earlier, in May 2018, he added another 33,000 shares, valued at $10 million. Additionally, during Tesla's secondary stock offering in February 2020, Musk bought 13,037 shares at $767 each.
Other prominent individuals associated with Tesla have also made notable market-open stock purchases. Larry Ellison, the CEO of Oracle Corp., participated in the same February 2020 secondary offering, buying over 1,250 shares of Tesla at $767 per share, an investment totaling more than $1 million.
More recently, Joe Gebbia, co-founder of Airbnb Inc. and a member of Tesla's Board since 2022, purchased over 4,000 Tesla shares in April of this year at a price of $265.308 per share, with the total value of this transaction also exceeding $1 million, according to SEC filings.
These insider purchases coincide with a period of significant activity and positive news for Tesla. The company is projected to surpass analyst expectations for vehicle deliveries in the third quarter, partly fueled by increased sales driven by the impending expiration of the $7,500 Federal Credit for electric vehicles after September 30, 2025. Furthermore, discussions around a new CEO compensation package for Musk have gained traction, with the potential for him to become the world's first trillionaire if all contractual milestones are achieved. Despite strong performance in momentum and growth, and satisfactory quality, Tesla's stock currently presents a poor value proposition, as highlighted by certain market metrics.