Tesla Shares Defy Legal and Governance Challenges with Unexpected Rally

Tesla’s stock has mounted a surprising recovery this September, demonstrating unexpected resilience amid mounting legal challenges and a controversial executive compensation proposal. The electric vehicle pioneer’s shares are approaching positive territory for 2025 after lagging behind other technology giants throughout the first half of the year.

New legal troubles emerging from a San Francisco federal court could pose significant financial and reputational risks for Tesla. A class action lawsuit alleges the company systematically preferred hiring visa holders over U.S. citizens to suppress wage costs. The filing accuses Tesla of engaging in “wage theft” and conducting disproportionate layoffs of American workers. These allegations threaten not only substantial financial penalties but also potential long-term damage to the company’s public... Read more...