Elon Musk Purchases $1 Billion TSLA Stock Amid Renewed Focus

Last week, I bought Tesla (TSLA) for Technology Innovators subscribers with the notion that Tesla’s energy business is underrated, the worst is behind the legacy EV business, and, most importantly, Elon Musk is motivated again. Here is an excerpt from my article from last week, Beyond EVs: How Tesla’s Energy, Robots, and Robotaxis will Power the Next Growth Phase:“I think he has extraordinary skills. A lot of it has to do with what I call the signal-to-noise ratio, and I learned from Steve Jobs back in the early ‘90s. 80% of his day was focused on getting three to four things done in that 18-hour cycle, and anything else was noise. You get a mandate, you get it done, you move on to the next thing you get the mandate done. That’s how he got stuff done 80:20. I believe Elon Musk is 100% signal. I think he tolerates zero noise, and it makes it very uncomfortable. I’ve never seen an entrepreneur like him.” ~ Kevin O’Leary“Before we cover the nuts and bolts of Tesla’s (TSLA) earnings, future products, and outlook, it is important to talk about its CEO Elon Musk. Though controversial, Elon Musk is the entrepreneur of this generation. That said, any time he has stepped away for Tesla, whether it was for X or Doge, the company has suffered. After a few side quests it appears that Musk is back and more focused than ever. In a recent interview, Musk acknowledged that the government is “unfixable” and that he is 100% focused on his companies. Additionally, the Tesla board has proposed a mind-boggling $1 trillion pay package to ensure that Musk remains focused. For Musk reap the reward, him and his team will need to attain lofty targets, including a market cap of $8.6 trillion in 10 years (TSLA’s market cap is currently ~$1.12 trillion). While Wall Street doubters are creeping in again after a few years of underperformance, Musk has a long history of meeting what seem like outlandish performance goals.”Elon Musk Bets on HimselfEarly Monday, Tesla investors got some long-awaited and welcome news – Elon Musk disclosed a new $1 billion purchase of TSLA shares. The unexpected news is further confirmation that Elon Musk is refocused on the future of Tesla and is putting aside distractions like politics and other ventures.Tesla Technical ViewThe price action in Tesla shares late last week foreshadowed a potential explosive move when they broke out of a four-month base structure and spiked more than 7% as volume soared to 96% above the 50-day average. Early Monday, shares rose another 8% to ~$427 after Musk’s share repurchase news circulated. TSLA shares are now approaching the first target level, the 1.618% Fibonacci extension.Image Source: TradingViewShould shares breach the 1.618% extension, the next plausible target would be the 2.618% extension, which lies at ~$524.Bottom LineWith Elon Musk’s $1 billion stock purchase and the proposed $1 trillion pay package, TSLA is experiencing a significant surge. This renewed focus from the CEO, combined with a technical breakout, indicates a bullish future.  One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks