Tesla stock has rebounded after a recent court ruling regarding pay and compensation for Chief Executive Elon Musk. The electric-vehicle maker closed up 2.6% at $189.64 on Wednesday, outperforming the Nasdaq’s 1.3% rise and the S&P 500’s 1% rise. This positive performance followed a two-day run of negative trading after a four-day rally last week.
Continued Rise in Stock Price
Tesla’s stock continued its rise into Thursday, with premarket trading showing a 0.6% increase to $189.79.
Legal Development Unlikely to Impact Stock
It’s important to note that this stock movement is unlikely to be related to the recent legal development. In January, a court invalidated Musk’s $56 billion pay package following a shareholder challenge. Delaware Chancery Court Judge Kathaleen McCormick was critical of Tesla’s corporate governance in her ruling. Musk and the Tesla shareholder plan to ask the judge to put the ruling on hold until an appeal is resolved.
Market Reaction
Shares of Tesla’s peers also saw movement in the market. Lucid Group was up 0.3%, NIO shares rose 1.7%, BYD stock gained 0.9% in Hong Kong trading, and General Motors stock increased by 0.34%.
Noteworthy Milestones
Despite the recent gains, Tesla is still far below its 52-week high of $299.29, which it reached last summer.
Trading Volume
The trading volume on Wednesday was 81.2 million, which was 33.3 million below its 65-day average daily volume of 114.5 million.
