Tesla Inc (NASDAQ: TSLA) shares are trading higher Monday after a U.S. jury on Friday said CEO Elon Musk would not be held liable for misleading investors in a 2018 tweet. Tesla shares are also seeing increased buying activity following positive analyst coverage from Wedbush.
What To Know: A U.S. jury has ruled that Musk will not be held liable for a tweet from 2018 in which the Tesla CEO said he had secured funding to take the company private, per Reuters.
Plaintiffs had claimed billions in damages, but the report indicates the jury sided with Tesla and Musk following approximately two hours of deliberation.
During the trial, Musk’s lawyer Alex Spiro noted that the tweet was “technically inaccurate.”
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“The whole case is built on bad word choice. Who cares about bad word choice? Just because it’s a bad tweet doesn’t make it fraud,” Spiro said in his closing argument.
Musk took to twitter shortly after saying he was “deeply appreciative” that the “wisdom of the people” prevailed.
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What Else: Wedbush analyst Dan Ives maintained Tesla with an Outperform rating on Monday and raised the price target from $200 to $225, citing tailwinds ahead of the company.
In a new note to clients, Ives said the reacceleration story in China is just starting to shift into gear. Ives expects such to act as a strong tailwind in the first quarter.
“Based on our recent survey work in the field we believe the China EV reacceleration story for Tesla is just starting to hit its stride,” Ives said in a tweet following the note.
Tesla also raised prices for its Model Y vehicles over the weekend, which could be driving some of the action Monday morning.
TSLA Price Action: Tesla has a 52-week high of $384.29 and a 52-week low of $101.81.
The stock was up 2.14% at $194.06 at time of publication, according to Benzinga Pro.
Photo: courtesy of Tesla.
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