Business Phrasal Verbs: Tesla CEO Purchases $1 Billion of Stock - Price Surges

Tesla’s stock turned out stronger than expected on Monday, climbing over 5% in morning trading, after CEO Elon Musk revealed that he had purchased more than 2.5 million shares worth around $1 billion.

Musk, who continues to head up the electric vehicle giant, disclosed in a regulatory filing that he had bought the shares at various prices on Friday. Analysts say the move could firm up investor confidence, suggesting Musk remains committed to Tesla’s long-term growth.

Earlier this month, Tesla, which deals in electric vehicle production and sales, announced a proposed pay package that could make Musk the world’s first trillionaire. The plan would bring in massive stock awards, potentially handing Musk up to 12% of Tesla’s shares if the company meets ambitious targets in production, profit, and market value. But still not enough to buy out the compnay outright.

If shareholders approve the package, Musk would have to prove Tesla can hit a valuation of $2 trillion just to unlock the first portion, and eventually drive it to $8.5 trillion for the full reward. Such goals would turn over the current order of the corporate world, even surpassing Nvidia’s present position as the world’s most valuable company.

Tesla, however, still has challenges to deal with. Sales have plunged this year, partly due to backlash over Musk’s ties to President Trump, and competition has intensified from U.S. automakers and Chinese rivals.

The billionaire’s growing presence in Washington politics has also raised questions about whether his attention is divided. Some investors worry he is focusing more on government affairs than on running Tesla.

Tesla will hold its annual shareholder meeting on November 6, where investors will vote on the new pay plan. If approved, it could hinder any doubts about Musk’s future role and set the stage for a historic transformation in executive compensation.

Vocabulary List

1. head up

Definition: To lead or be in charge of something (like a company, team, or project).

Example: Elon Musk continues to head up Tesla despite his growing role in politics.

Practice Question: Who currently heads up the company or organization you admire most?

2. buy out

Definition: To purchase a controlling share of a company, or to remove doubts/opponents by paying or compensating.

Example: The new pay package could buy out any lingering doubts about Musk’s leadership.

Practice Question: If you could buy out one business in your city, which one would it be and why?

3. bring in

Definition: To introduce, attract, or generate something (such as money, people, or policies).

Example: The new compensation plan would bring in massive stock awards for Musk.

Practice Question: What kind of changes would you like your government to bring in next year?

4. deal in

Definition: To be involved with something, often as a business or main activity.

Example: Tesla deals in car production.

Practice Question: What industries does your company mostly deal in?

5. firm up

Definition: To make something stronger, more certain, or more secure.

Example: Musk’s billion-dollar share purchase helped firm up investor confidence.

Practice Question: What actions could a teacher take to firm up discipline in the classroom?

6. turn over

Definition: To produce, generate, or change hands (often used with profits, power, or responsibility).

Example: Tesla aims to turn over the global corporate order by surpassing its competitors.

Practice Question: What kind of profits does your favorite company turn over each year?

7. turn out

Definition: To happen or develop in a particular way, often unexpectedly.

Example: Tesla’s stock turned out stronger than expected after Musk’s purchase.

Practice Question: Can you think of a time when things didn’t turn out the way you had planned?