Why Tesla Stock Continued to Run Higher Today

Key Points

• Elon Musk is putting his money where his mouth is.

• His $1 billion Tesla stock purchase is his largest ever by value.

• Tesla is preparing to launch a robotaxi fleet, and Musk sees huge potential for the Optimus humanoid robot.

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Tesla (NASDAQ: TSLA) stock has been on fire. CEO Elon Musk must think it has plenty more room to run, though. After Musk revealed a large Tesla stock purchase, other investors are joining the party.

Shares had been on the upswing before, and they jumped another 6% today by 12:09 p.m. ET.

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Image source: Tesla.

Betting on Tesla's future

It's no surprise that Musk believes Tesla has a bright future. The outspoken CEO hasn't been shy about telling investors to overlook Tesla's slumping electric vehicle (EV) sales when thinking about investing in Tesla stock. He recently said he believes that 80% of Tesla's value will eventually come from its Optimus humanoid robot.

He's backing up his confidence in the company with a huge stock purchase. Musk just made a large Tesla stock purchase for the first time in over five years. He added 2.57 million shares on Friday for about $1 billion, according to a Securities and Exchange Commission filing. The Form 4 filing shows Musk made several purchases last Friday at various prices ranging from about $372 to $396 per share.

Those stock purchases came after Tesla stock soared by 25% just over the last month. Investor excitement is building as the EV leader prepares to launch fully self-driving technology with a robotaxi fleet.

An Optimus robot launch may be further in the future, but Musk clearly thinks now is the time to buy shares. Musk's optimism shouldn't really change what investors think. Those who own Tesla shares should already believe in the potential for Optimus and Tesla's robotaxi plan. Musk's confidence seems to be changing some investor minds, though, as buyers are following him into the stock today.

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Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.