Tesla stock went up mainly because CEO Elon Musk purchased about $1 billion worth of Tesla shares recently, buying 2.57 million shares on the open market. This significant insider purchase was seen by investors as a strong vote of confidence in the company's future, particularly in Musk's vision for Tesla's expansion into AI and robotaxi businesses. Musk's buying activity triggered increased investor optimism, pushing Tesla's stock up by about 3.6% on Monday and helping the stock turn positive for the year after a difficult first half. This move was Musk's largest open market purchase of Tesla shares since 2020, signaling his commitment to the company despite challenges like slower EV sales and competition from lower-cost rivals. Additionally, Tesla's stock has rebounded strongly, up about 85% from its low in early April, supported also by investor optimism around a proposed long-term compensation package for Musk and new energy storage product developments. However, despite the rise, the stock's gains are mostly attributed to Musk's stock purchase and investor sentiment rather than fundamental improvements in Tesla's business yet.
