Tesla says Elon Musk plans to buy $20 million worth of stock as soon as possible
- Elon Musk plans to buy $20 million of Tesla stock, the company said in a filing Wednesday.
- The plans were announced the day after a judge approved Tesla and Musk's settlement with the US' top stock regulator.
Tesla CEO Elon Musk plans to buy $20 million worth of the company's stock on the open market "during the next open trading window," the company said in a regulatory filing Wednesday.
The plans were revealed the day after a judge approved Tesla and Musk's combined $40 million settlement with the Securities and Exchange Commission, the US' top stock market regulator, stemming from his now-infamous "go-private" tweet that ended with Tesla remaining public but Musk stepping down from his position as chairman of the board of directors.
It's not clear when exactly the next possibility for Musk to purchase stock may be, and Tesla did not respond to a request for comments from Business Insider, but buying the newly issued shares could help Tesla's stock price recover from the significant losses it saw following the go-private saga, the subsequent lawsuit, and eventual settlement.
Musk is already Tesla's largest shareholder, owning just under 20% of the outstanding stock. The filing Wednesday says Musk will purchase newly issued stock, which should not affect his proportional ownership of the company. At Wednesday's prices, $20 million could buy roughly 71,428 shares.
Tesla's stock price rose about 2% following the filing Wednesday, also helped by the company's announcement it had secured a Shanghai site for its first overseas Gigafactory in China. Tesla is expected to report third-quarter earnings on October 31.
More from Tesla's recent drama:
- Bankers are reportedly approaching Tesla as debt payments loom
- Over $1 billion in upcoming debt payments are putting a huge amount of pressure on Tesla's Q3 results - here's what experts have to say about the company's make-or-break moment
- Grimes and Elon Musk have been spotted together for the first time since the SEC filed a lawsuit claiming that Musk falsely claimed he would take Tesla private at $420 to amuse his girlfriend