Tesla is set to pay the world's richest man $1trn over the next decade

Tesla boss Elon Musk has bought around $1billion (£740million) of shares in the electric car maker.

The billionaire tycoon snapped up 2.57m shares at prices between $371 and $396, according to regulatory filings.

The purchase was seen as a vote of confidence in the company and sent shares up 8.8 per cent in early trading in the US on Monday.

The move came as Musk reclaimed his crown as the world's richest person having briefly been overtaken by Oracle boss Larry Ellison last week.

A rebound in Tesla shares since then means Musk now has a fortune of £310billion compared to Ellison's £260billion.

The filings were published as Tesla chairman Robyn Denholm was forced to defend the company's plan to hand Musk a pay package worth $1trillion (£740billion) over the next decade if various targets are hit.

Musk reclaimed his crown as the world's richest person having briefly been overtaken by Oracle boss Larry Ellison last week.

Denholm hailed Musk as a 'generational leader' and said the success of Tesla depended on his presence at the top of the company.

The comments came after Pope Leo criticised corporate pay packages - and highlighted Musk's potential earnings.

Noting that some chief executives earn 600 times more than their staff, compared to four to six times more 60 years ago, the Pope said Musk could soon the worlds' first trillionaire.

Read More Elon Musk eyes $1TRILLION pay deal as Tesla sets tough targets

'What does that mean, and what's that about?' he said. 'If that is the only thing that has value anymore, then we're in big trouble.'

Musk came under fire earlier this year after joining Donald Trump's administration as head of the Department of Government Efficiency, or Doge.

His political activity sparked a backlash in parts of the world with Tesla sales taking a hit.

The firm is also facing fierce competition from Chinese competitors.

Musk quit his job at Doge in May, however, after falling out with Trump and has since vowed to dedicate more time to Tesla.

His business interests do not stop there, however. Tusk has also bought Twitter, which he renamed X, and runs rockets company SpaceX, his xAI start-up, tunnelling group The Boring Company and Neuralink, which implants computer chips in the brain.

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Musk buys $1bn in Tesla shares as EV maker peps bumper pay package