Elon Musk has responded to Tesla Inc.’s record pay proposal by purchasing about $1 billion worth of shares, a move that lifted the stock in premarket trading.

According to a regulatory filing released Monday, the billionaire acquired the shares indirectly through a revocable trust on Sept. 12.

The purchases came as Tesla Chair Robyn Denholm spoke with reporters about the board’s plan to grant Musk more than $1 trillion in stock, contingent on the company meeting aggressive market value and performance targets.

Tesla shares rose as much as 7.3% in premarket trading. If the momentum holds through the regular session, the stock will turn positive for 2025, rebounding from a 45% slump recorded in early April.

Musk, last bought Tesla stock on the open market in February 2020, according to Bloomberg data.

He later sold more than $20 billion worth of shares in 2022, the year he acquired Twitter.

The latest purchase signals renewed confidence in Tesla’s outlook after a tough first half marked by a 13 per cent drop in global vehicle deliveries.

While Musk has promoted the company’s ambitions in robotaxis and humanoid robots, he has also warned that Tesla may face “a few rough quarters” once US electric-car purchase incentives expire at the end of this month.