TLDR
- Tesla stock closed at $308.72, down 23% year-to-date and 37% below its $488.54 peak
- Only 5% of Morgan Stanley summer interns now view Tesla as their most desirable car brand, down from 11% last year
- Tesla’s board awarded CEO Elon Musk 96 million new shares worth $29 billion as interim compensation while his 2018 pay package remains court-blocked
- Shareholders filed a class action lawsuit alleging Tesla exaggerated self-driving capabilities to boost company value
- Stock trades near critical technical support at $295 with resistance at $314-$330 range
Tesla shares closed Wednesday at $308.72, with after-hours trading pushing the price slightly lower to $308.10. The electric vehicle maker has struggled this year, posting a 23% decline year-to-date.
The stock remains roughly 37% below its peak of $488.54. Tesla’s share price has recently stabilized within a consolidation pattern marked by erratic price swings.
The stock now sits near critical technical support at $295. Resistance levels have formed at $314-$330, creating a narrow trading range.
Morgan Stanley analyst Adam Jonas recently reiterated an Overweight rating on Tesla with a $410 price target. However, the firm’s summer intern survey revealed concerning trends about Tesla’s brand appeal.
Only 5% of interns labeled Tesla as their “most desirable car brand.” This figure represents a decline from 11% in the previous year.
The survey provides insight into preferences of future business leaders and commercial influencers. Interest in Tesla’s robotaxi service also dropped sharply to 12% from 31%.
Board Awards Musk Massive Compensation Package
Tesla’s board made headlines this week by awarding CEO Elon Musk 96 million new shares. The package carries a value of approximately $29 billion at current prices.
The board structured this as an “interim” compensation arrangement. Musk’s original 2018 pay package remains blocked by a Delaware court.
These new shares will only vest if Musk remains a key executive until 2027. The board also imposed a five-year holding period on the shares.
The board cited the necessity to retain Musk for Tesla’s future operations. The company continues pivoting toward AI, robotics, and autonomous vehicle technology.
If courts reinstate Musk’s original 2018 compensation package, this interim grant will be voided. This structure prevents double compensation for the CEO.
Musk currently owns about 13% of the company. The new shares would increase his ownership stake if they vest.
Legal Challenges Mount
Tesla faces mounting legal pressure over its self-driving technology claims. Shareholders recently filed a class action lawsuit against the company.
The suit alleges Tesla exaggerated its self-driving capabilities to boost company value. This legal challenge adds to Tesla’s regulatory headwinds.
The company faces increasing competitive pressure in the electric vehicle market. A maturing vehicle lineup has also pressured sales growth.
Reduced U.S. EV subsidies have contributed to Tesla’s challenges this year. These factors combined have led to the stock’s 25% decline.
Analyst sentiment remains mixed despite the recent struggles. Morgan Stanley’s $410 price target suggests upside potential of about 33% from current levels.
Technical analysis suggests Tesla stock sits at a potential inflection point. The risk of a move increases if TSLA breaks out of its current narrowing price range.
The stock’s consolidation pattern could resolve in either direction. A break below $295 support could trigger further selling pressure.
Tesla’s board compensation decision reflects concerns about executive retention. The company’s pivot toward AI and robotics requires continued leadership stability.
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