Tesla (TSLA) CEO Elon Musk and political groups supporting him are spending millions in a high-stakes race for a seat on the Wisconsin Supreme Court. This comes as Tesla challenges a state law that blocks the company from opening its own car dealerships. The law requires that only third-party dealers can sell vehicles in Wisconsin, and Tesla is suing for an exemption. At the same time, Musk-backed political action committees have thrown their support behind conservative candidate Brad Schimel, who is running against Democrat-backed Susan Crawford.
Tesla has tried for years to change the law, but previous efforts through the state legislature and budget have failed. The company filed a lawsuit in January asking for approval to open four dealerships by arguing that the ban on manufacturer-owned stores hurts competition and consumer choice. The Wisconsin Automobile and Truck Dealers Association opposes the move, saying that existing laws protect buyers by making sure third-party dealers advocate for their interests. The case is currently pending in Milwaukee County Circuit Court, with no hearing date set.
The Supreme Court race has become one of the most expensive judicial elections in U.S. history, with more than $80 million spent. Musk personally donated $3 million to the Wisconsin GOP, while groups he supports have contributed over $17 million to help Schimel. Musk tweeted his endorsement just days after Tesla filed its lawsuit. Unsurprisingly, critics claim that the timing shows he’s trying to influence the court’s future ruling, and both candidates deny that large donations from wealthy backers will affect their decisions if elected.
Is Tesla a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 11 Holds, and 11 Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $335.32 per share implies 25.4% upside potential.
