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Tesla Shares Gain on Analyst Optimism and Court Win, Crash Woes Linger

Tesla Stock Rises After Hours Amid Wall Street Optimism Despite Crashes and Peter Thiel’s Stake Sale

  • Tesla shares climbed following optimistic analyst feedback and a favorable legal decision.
  • Three more Robotaxi accidents reported in Austin, increasing the total to seven since the service began.
  • Peter Thiel’s hedge fund significantly cut its stake in Tesla, while retail investor sentiment turned negative.
  • A California judge reversed class certification in a racial harassment lawsuit against Tesla’s Fremont plant.
  • Analyst projections highlight growing confidence in Tesla’s Full Self Driving and autonomous vehicle expansion.

Tesla stock rose for a second trading session on Monday, with shares gaining 1.1% to close at $408.92 and adding another 0.3% after hours. Investors responded to positive analyst reports and a recent court ruling that favored the company. Despite these gains, news of additional Robotaxi crashes and a sizable reduction of Tesla shares by Peter Thiel’s hedge fund weighed on retail sentiment.

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T.D. Cowen reaffirmed its ‘Buy’ rating and maintained a $509 price target following a Mobility Bus tour in Austin that included visits to Giga Texas and hands-on demonstration of Tesla’s Full Self Driving system. The broker expressed increased confidence in the company’s approach after experiencing the new FSD version, describing the test rides as “smooth and impressive.” According to their updated forecasts, cost estimates for Tesla’s upcoming Cybercab robotaxi may be about $0.30 per mile, down from $0.38 previously. The firm expects production to start in April 2026, with autonomous vehicles potentially contributing significantly to financial results in the latter half of 2026, as outlined in their recent report.

A California state judge reversed a 2024 decision that had allowed more than 6,000 Black workers at Tesla’s Fremont facility to sue as a class in a racial harassment lawsuit. The judge stated he could not rely on testimony from a small employee sample to represent the whole group. As a result, the case continues through individual claims and related agency actions, as reported.

Meanwhile, new filings detailed three additional Robotaxi incidents in Austin, bringing the total to seven crashes since the service launched. The new incidents involved property damage after interactions with a backing vehicle, a cyclist, and an animal; no injuries were reported. Disclosures indicate the crash rate is currently about twice as high as that of a competitor, Waymo, even with in-car supervisors.

In the third quarter, Peter Thiel’s hedge fund, Thiel Macro LLC, reduced its Tesla holdings by over 76%, selling 207,613 shares and retaining 65,000 shares. The move followed an appeal from Elon Musk to shareholders to hold their stock and a recent warning to Bill Gates about his Tesla short position, as referenced in reports and Musk’s statement on social media.

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As of this year, Tesla shares have gained 1.3%. Some retail investors cautioned against further declines, with one user stating, “There is nothing about the last 10 days of trading that makes this bullish. 474 to 380. GLTA, but this is dying.” Sentiment on Stocktwits moved from ‘neutral’ to ‘bearish’ since Friday.

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