Tesla confirmed early today that CEO (or ‘nothing‘) Elon Musk bought $10 million worth of TSLA shares. The transaction is in addition to another $20M worth of shares that he plans to purchase directly from the company. As we reported earlier this month, Musk announced that he is buying $20 million worth of Tesla shares – seemingly to compensate for the SEC settlement fine. The SEC fined Musk and Tesla $20 million each. When buying Tesla shares, Musk generally does it on the open market, but the company confirmed that he planned to buy them directly from Tesla, which made it look like he wanted to at least partly compensate the company for the fine – though he is getting shares in return. Now, Tesla revealed in a new SEC filing today that Musk bought an additional 29,844 shares worth almost $10 million: In the filing, Tesla confirmed that those purchases on the market are separate from the $20 million worth of shares that Musk planned to buy from Tesla: “The transactions reported on this Form 4 are open market purchases of Tesla Common Stock on October 29, 2018 by Elon Musk, totaling $9,997,264.14. As previously announced, Mr. Musk has also committed to purchase an additional ~$20 million of Common Stock in a direct transaction with Tesla, which is expected to close by next week.” At now 33,767,765 shares, Musk’s stake in Tesla is worth $11.3 billion as of the market’s close yesterday. The new purchase comes as Tesla has surged following higher than expected earnings during the third quarter. Here’s the filing in full: Electrek’s Take While those amounts are relatively small purchases compared to Musk’s stake in the company, executives buying into their own stock is generally seen as a good sign by the market. In this case, it comes after an important surge in pricing and it could mean that Musk thinks that the stock should have surged higher after the earnings. Musk has been talking about burning the shorts for a while now, but it has instead been a back and forth battle as Tesla’s stock took an important hit following the attempt to go private. But now that they reported their most important profit to date, the short thesis is starting to fall apart. It doesn’t mean that it is smooth sailing from here on out. There are still plenty of mistakes that Tesla can make, but it certainly looks like the “eating glass” part is done. FTC: We use income earning auto affiliate links. More. Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.<doc-sep>Tesla CEO Elon Musk has purchased around $10 million worth of additional shares in the electric car maker and plans to buy another $20 million as soon as next week, according to a filing on Tuesday. Musk previously promised to buy $20 million in Tesla stock following fraud charges and a settlement with the SEC that cost him and the company $20 million each. Separate from that pronouncement, Tuesday's filing reveals that Musk purchased 29,844 shares of Tesla worth $9.997 million in open market transactions. He now owns about 20 percent of the company's shares. Musk is still referred to as chief executive officer in today's filing after he removed the title of CEO from his biography page on the Tesla website last week. As part of the SEC settlement, Tesla is required to find a new chairman for the next three years. Tesla's stock price has risen about 9 percent since its third-quarter earnings report last week. The company reported profits and positive cash flow for just the third time in its history WATCH: Auto stocks rally on reports China may cut sales tax<doc-sep>
Elon Musk has purchased $10 million worth of Tesla stock just over a week after the company said he intended to buy $20 million. The CEO now owns 19.8% of the company's equity, making him the largest shareholder. Tesla CEO Elon Musk purchased 29,844 shares of the company, worth $9.997 million, on Monday, according to regulatory documents filed Tuesday morning. The disclosure comes after Musk seemed to hint on Twitter over the weekend that Monday was the opening in which Tesla had previously announced he intended to buy $20 million worth of shares. Musk, already Tesla’s largest shareholder, now owns just under 20% of the company’s outstanding shares. It’s not clear if he intends to make more purchases. The investments were made on the open market, in three rounds priced at $334.24, $334.28, and $334.93. According to Bloomberg, Musk is still waiting on the company to issue $20 million worth of stock in order for him to purchase it "by this week." The company's total number of shares outstanding has not changed since early August. Musk’s most recent stock purchases were in June, May, and March of this year, according to regulatory filings. In those rounds, he bought $25 million, $9.85 million, and $25 million, respectively. Tesla’s stock price is up 31% in the last week as a surprise quarterly profit helped shares rally from an October low of $244. On Tuesday, Ben Kallo, an analyst at Baird, said a Wall Street Journal of a "deepening" FBI inquiry into Tesla’s Model 3 statement, would be a hard case for prosecutors to prove. Wall Street now has an average price of $319 for Tesla —roughly 4% below Tuesday’s prices of $334. Now read: