New Delhi, Sept. 16 -- Tesla share price rallied over 3% on Monday after reports revealed that CEO Elon Musk purchased more than 2.5 million shares worth approximately $1 billion. Tesla stock price closed 3.63% higher at $410.26 apiece, valuing the electric vehicle maker at $1.28 trillion.

According to a regulatory filing, Musk acquired the shares in multiple tranches at varying prices on Friday. The purchase is being interpreted by investors as a sign of the billionaire's confidence in the company's long-term prospects, Reuters reported.

Earlier this month, Tesla unveiled a proposed pay package for Musk that could potentially make him the world's first trillionaire, contingent upon achieving a series of highly ambitious performance goa...