/ December 23, 2025 Tesla’s stock is trading near its all-time highs, approaching $488.77 on Tuesday, even as the company faces significant sales challenges in Europe. This resilience is attributed to a pivotal court ruling and a fundamental shift in how Wall Street perceives the electric vehicle maker’s core business. A Legal Victory Resolves Key Uncertainty A major overhang for investors was removed on December 19th when the Delaware Supreme Court reinstated CEO Elon Musk’s 2018 compensation package. Valued at approximately $139 billion, this award is now seen as firmly realigning Musk’s long-term focus on artificial intelligence and robotics with shareholder interests. The court’s decision has been interpreted as securing his commitment to Tesla’s most ambitious future technologies. The market’s response was swift. On December 22nd, Canaccord Genuity raised its price target to $551, a significant increase from its previous target of $482. In a separate move, RBC Capital Markets reiterated its buy rating, setting a price target of $500—precisely where the stock recently traded. European Sales Contraction Highlights Competitive Pressure Operational data presents a contrasting picture. In November, Tesla’s new vehicle registrations in the European Union plummeted by 34.2% to just 12,130 units. Consequently, its market share within the EU’s electric vehicle segment dwindled to a mere 1.4%. This decline coincides with aggressive expansion by competitors; Chinese automaker BYD nearly tripled its registrations during the same period, gaining substantial ground through competitive pricing.