/ December 22, 2025 As the holiday trading period approaches, Tesla enters with significant momentum following a major legal resolution and tangible progress in its autonomous vehicle division. The Delaware Supreme Court has reinstated CEO Elon Musk’s multi-billion dollar compensation package, bringing a protracted legal battle to a close. Concurrently, the company’s robotaxi initiative in Texas is demonstrating marked advancement. The convergence of these developments—legal clarity and technological push—is reshaping the narrative around the electric vehicle pioneer. Autonomous Vehicle Testing Reaches New Milestone Tesla’s operational strategy received a boost over the weekend with new footage circulating on social media. Videos from Austin, Texas, showed Model Y vehicles operating on public roads without a safety driver present in the driver’s seat. This represents a critical progression in the company’s robotaxi roadmap. Since launching a dedicated test fleet in the summer of 2025, initial trials involved human safety drivers. The company has now officially confirmed the removal of these overseers, signaling growing confidence in its Full Self-Driving (FSD) software. Tesla’s stated goal is to commence an unsupervised commercial robotaxi service in Texas and California in early 2026. Furthermore, mass production of the purpose-built “Cybercab”—a vehicle designed without a steering wheel—is scheduled to begin at the Gigafactory Texas in April 2026. This shift underscores the company’s broader transition from a pure electric vehicle manufacturer to a developer of “Physical AI” systems. Delaware Court Reinstates Landmark CEO Compensation Package On December 19, 2025, the Delaware Supreme Court issued a ruling that effectively concludes the dispute over Musk’s 2018 performance-based award. The case, Tornetta vs. Musk, was initially brought by a shareholder and saw success in the Chancery Court, which voided the entire stock option package in January 2024. While the higher court acknowledged there were governance process deficiencies, it deemed the complete rescission of the award “disproportionate and inequitable.” Consequently, the compensation package has been fully reinstated. Based on the current stock price, its value is approximately $139 billion. The judgment awards the plaintiff side merely $1 in symbolic damages, a stark contrast to the potential billions sought. Attorney fees have also been substantially reduced and capped at around $55 million. For the market, the key takeaway is the removal of a longstanding overhang. Many analysts viewed the litigation as a burden, fueling speculation about Musk’s future commitment to Tesla. With the package reactivated, his long-term alignment with the company is perceived as secure. Should Musk exercise all options from the 2018 grant, his ownership stake would increase from roughly 12.4% to about 18.1% on a fully diluted basis, amplifying his influence.