Tesla shares are trading near their 52-week high as the company approaches a pivotal week, fueled by a landmark legal resolution for CEO Elon Musk and accelerating progress in its autonomous ride-hailing venture. The convergence of these developments presents both significant momentum and heightened expectations for the electric vehicle maker.
Rapid Expansion of Autonomous Fleet Services
Recent data from California’s Public Utilities Commission (CPUC) reveals a dramatic scaling of Tesla’s ride-service operations. Between August and December, the number of registered vehicles for this service surged from 28 to 1,655. The program now also lists 798 authorized drivers. Unlike competitor Waymo, these Tesla vehicles are not yet fully autonomous; each is currently monitored by a safety driver overseeing the Full Self-Driving software.
User reports indicate wait times of up to 40 minutes, suggesting demand is outstripping the available supply. To support further expansion, Tesla is actively recruiting “AI operators” and factory workers in the Bay Area. In a related development, a near-production prototype of the anticipated “Cybercab” was spotted in Austin on December 21. This vehicle, equipped with side mirrors and a steering wheel for regulatory testing, is slated for a market launch in April 2026.
Court Ruling Solidifies CEO’s Stake and Ends Uncertainty
A major overhang for investors was removed on December 19 when the Delaware Supreme Court overturned a prior ruling and reinstated the 2018 compensation package for Elon Musk. Valued at approximately $139 billion, this decision increases Musk’s ownership stake in Tesla from 12.4% to 18.1%. Market observers note the dual implications: while it more firmly ties the visionary leader to the company, it also results in dilution for existing shareholders.
The legal validation allows Musk to focus entirely on executing his strategic vision for Tesla without the distraction of ongoing litigation.
Should investors sell immediately? Or is it worth buying Tesla?
Mixed Signals from Insiders and Institutional Investors
Despite the positive news flow, transactions by company insiders reveal a more cautious stance. In December, board member Kimbal Musk divested 56,820 shares worth $25.6 million. Chief Financial Officer Vaibhav Taneja also sold securities valued at $1.17 million.
The picture among institutional investors is similarly divided. During the third quarter, Perpetual Ltd increased its position by 57%, while firms including Zevenbergen Capital and Surience Private Wealth meaningfully reduced their holdings.
Competitive Landscape and Lofty Valuation
Tesla’s strategy faces a contrasting backdrop with its key rival. Waymo, the Alphabet-owned autonomous vehicle unit, was forced to temporarily halt its driverless service in San Francisco over the weekend due to a major power outage. Tesla’s camera-based autonomous system is touted as being less dependent on such external infrastructure.
The company’s ambitious goals—including deploying 5,000 Optimus robots by the end of 2025 and launching Cybercab mass production in April 2026—are already factored into a steep valuation. Tesla stock trades at a price-to-earnings ratio of 321.5. The average analyst price target sits at $404, roughly 16% below the current level of $482.65. Mizuho analysts maintain a more optimistic outlook, citing a $530 target contingent on a smooth rollout of the robotaxi service without major incidents. The coming months will be critical in determining whether the premium valuation is justified.
Ad
Tesla Stock: Buy or Sell?! New Tesla Analysis from February 7 delivers the answer:
The latest Tesla figures speak for themselves: Urgent action needed for Tesla investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 7.
Tesla: Buy or sell? Read more here...
