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Musk bets Tesla rally has legs with $24.9 million share purchase

Tesla CEO Elon Musk after ringing the opening bell to mark the company's initial public offering on the Nasdaq market in New York on June 29, 2010. Musk shelled out $24.9 million to buy 72,500 Tesla shares on Tuesday, according to a regulatory filing. Photo credit: REUTERS

Think the run-up in Tesla Inc. shares is about done? Elon Musk doesn't seem to think so.

The CEO of the EV maker shelled out $24.9 million to buy 72,500 more shares on Tuesday, according to a regulatory filing. The purchase followed a roughly 13 percent jump for the stock since Musk bought $9.85 million worth of shares on May 7.

Tesla shares rallied after Musk, 46, struck a confident tone with investors during the electric-car maker's annual meeting last week. He said the company was "quite likely" to build 5,000 Model 3 sedans a week by the end of this month and reaffirmed forecasts that Tesla would generate profit and cash in the third and fourth quarters.

As part of Tesla's drive toward long-elusive profitability, Musk disclosed Tuesday that the company will dismiss about 9 percent of its employees worldwide. The across-the-board cutbacks almost entirely involve salaried workers at Tesla's Palo Alto, Calif., headquarters and beyond.

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