Tesla Stock: Legal Setback Offset by Strong Market Performance

A Delaware judge has reaffirmed her decision against Elon Musk's controversial compensation package, which could have been worth over $100 billion. Despite Tesla shareholders' renewed approval in June, the judge maintained that Musk wielded excessive influence during negotiations and failed to disclose crucial information about his close relationships with board members. This legal development prompted a more than 2% decline in Tesla's stock during after-hours trading. However, the electric vehicle manufacturer has demonstrated remarkable resilience in the market, with its shares surging approximately 44% since the beginning of the year, effectively reversing its initial underperformance in the S&P 500.

Analyst Outlook Remains Optimistic

Market analysts maintain a positive stance on Tesla's prospects, with some upgrading their recommendations from "hold" to "buy." The company's recent quarterly performance shows improvement, with earnings per share reaching $0.68. Looking ahead to 2025, analysts project earnings per share of $2.42, though the average price target of $226.88 sits below current trading levels. The stock's impressive recovery of more than 155% from its April low underscores investor confidence in the company's trajectory.