Beyond Our Wildest Imaginings, but not to Elon Musk

TSLA has risen substantially since Elon Musk returned. Next stop: the all-time high of $488.54

Tesla's stock price rose 3.6% to $410.04 yesterday after CEO Elon Musk bought more than $1 billion of its shares.

The move expresses Musk’s commitment to the company as the board prepares for a shareholder vote on a lucrative new pay package that could deliver as much as $1 trillion in stock to him over the next decade.

“To us, this sends a strong signal of confidence in the most important part of Tesla’s future business, robotaxi,” Jed Dorsheimer, an analyst with William Blair, wrote in a note Monday.

Musk has outlined his vision for transforming Tesla from the world’s most valuable electric-vehicle maker into an artificial intelligence and robotics company with a focus on autonomous driving and humanoid robots.

Elon Musk is a brilliant tactician and is well aware of the positive psychological effect of buying ONE BILLION DOLLARS of his company's stock on the open market. But $1 billion represents "only" 0.2% of his net worth, that is, how a person with $1 million might worry about an investment of $2,000. Sure, he would prefer not to lose it, but it's not the end of the world if he does.

Elon Musk has far bigger game afoot than you or I.