Dhaka, Sept. 17 -- Tesla's stock surged more than 7% in premarket trading on Monday as CEO Elon Musk disclosed the purchase of over 2.5 million shares worth about $1 billion.

According to a regulatory filing, Musk bought the shares on Friday at varying prices, a move analysts say signals his confidence in the company's future.

The development comes as Tesla prepares for a crucial shareholder vote on a proposed pay package for Musk, which could potentially make him the world's first trillionaire if a series of highly ambitious performance targets are met over the next decade.

Under the plan, Musk would be awarded shares equal to up to 12% of Tesla in 12 separate tranches if the company achieves milestones including sharp increases in ca...