Key Stats for Tesla Stock
- Price change for Tesla stock in the last 6 months: -11%
- $TSLA Stock Price as of Oct. 16: $355
- 52-Week High: $499
- $TSLA Stock Price Target: $398
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What Happened?
A US appeals court handed Tesla (TSLA) a win on Friday.
The 9th US Circuit Court of Appeals threw out an order that let California customers sue as a group. They claim Tesla misled them about its full self-driving technology.
The three-judge panel said there were too many individual questions. Judges could not tell what each buyer actually saw before buying.
The plaintiffs also could not show that every class member saw the allegedly false statement.
The lower court had grouped thousands of buyers together. Judge Rita Lin ruled last year that many of them likely saw Tesla’s website claim.
That claim said vehicles sold from October 2016 onward had the hardware needed for full self-driving. Now those buyers cannot pursue their claims jointly, at least for now.
This is not a ruling on the merits, and the false advertising case is still pending.
The plaintiffs say Tesla convinced customers to pay extra for software that does not work and Tesla has denied the claims.
Their lawyers said the panel missed the unique circumstances and the importance of the hardware statement. The US Chamber of Commerce backed Tesla in the appeal.
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What the Market Is Telling Us About Tesla Stock
For Tesla stock, this is good news, but it is not the end of the story. The case can continue, and the plaintiffs may push back.
The ruling also lands at a time when full self-driving matters a lot to Tesla’s business.
On the company’s Q2 call, executives said FSD is a big reason customers come to look at the car. About 55% of North American deliveries had an FSD subscription enabled at delivery.
Nearly 1.5 million customers pay for FSD worldwide.
Tesla also runs a robotaxi service in 7 US markets. Management said robotaxi miles are growing fast. It reported 380,000 unsupervised miles with no notable incidents.
There are costs to watch, too. Free cash flow was negative last quarter because capital spending more than doubled.
Tesla expects more than $25 billion in capex this year. Automotive margins, excluding credits, fell from 19.2% to 16.3%.
So Tesla stock sits between strong demand for self-driving and heavy spending. Fewer legal risks help, but the lawsuit is still open.
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So what is Tesla stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
