A “insane bet”: Elon Musk injects 1 billion to save Tesla from the sinking

Tesla found momentum on the stock market this Monday, September 15: the action jumped almost 6 % after the announcement of a massive takeover by Elon Musk himself. The manufacturer’s boss acquired 2.57 million shares for an amount of approximately $ 1 billion, at a price between 372 and 396 dollars, according to documents deposited with the SEC. This is its first major operation on the market since 2020.

Elon Musk injects a billion in Tesla: a personal bet on the future

The gesture is highly symbolic. Tesla crosses a zone of turbulencewith retardant sales, pressure margins and Chinese competition more aggressive than ever. Cybertruck is struggling to convince and the transition to a strategy focused on artificial intelligence and robotics remains expensive and uncertain. In this context, see Musk put his money back in the machine aims to show that he always believes in Tesla’s ability to reinvent herself.

For Matt Britzman, analyst at Hargreaves Lansdown, it is “The clearest signal to date that Musk again fully supports his Tesla confidence”adding that the story “Musk-Tesla” appears “Back on the rails” After a hesitant start to the year.

The operation also intervenes in a moment of strategic showdown. The board of directors recently presented a new colossal remuneration plan, which can reach up to $ 1,000 billion over ten yearsprovided that Tesla achieves extraordinary industrial and financial objectives. Musk, for his part, claims more weight within the company: he claims to want 25 % of the voting rights to continue his projects in AI and robotics within the framework of Tesla. For the time being, it only has 13 %about it.

The fact remains that this poker stroke does not solve the structural difficulties of the manufacturer. Tesla is one of the least efficient in the “Magnifiment 7” group, with a decline of 2 % since January, where the other technological giants are growing. The electric vehicle market is cut, costs are increasing and the competition is tightened. Still Friday, the chairman of the board of directors, Robyn Denholm, was trying to reassure by saying that Musk had now returned “At the controls” After several months spent in political debates in Washington.

The bet is therefore very clear: Musk wants to convince that Tesla can bounce back. It remains to be seen if this billion will be enough to reverse the trend.