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Tesla Stock at Crossroads as Musk Bets Get Bigger

Tesla Stock at Crossroads as Musk Bets Get Bigger

Tesla ( (TSLA) ) has been popular among investors this week. Here is a recap of the key news on this stock.

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Tesla investors faced a mixed week as Elon Musk’s growing web of ventures drew fresh attention to governance and valuation risks. While SpaceX’s S‑1 revealed a potential $760 billion Mars-linked pay package that, together with Musk’s Tesla awards, could total $1.8 trillion in performance equity, Wall Street’s view on Tesla remains cautious, with the stock rated a Hold and the average target of about $403 per share implying modest downside.

Operationally, Tesla shifted its Full Self-Driving (Supervised) model in Europe from a hefty one-time fee to a €99/£99 monthly subscription, sparking a more than 2% share-price pop as investors bet on higher recurring software revenue, even as safety watchdogs highlight the need for driver vigilance. At the same time, Evercore warned that U.S. demand is softening despite recent Model Y price hikes, trimming expectations for Q2 deliveries and earnings, while a fresh recall of 14,575 Model Y SUVs over missing weight labels added to a string of safety-related actions that continue to weigh on sentiment.

Analysts now see Tesla navigating a tougher demand backdrop and rising regulatory scrutiny just as competition in EVs intensifies, even though its ability to push fixes via over‑the‑air updates helps limit costs and downtime. For stock pickers, Tesla has become a battleground name: consensus is stuck at Hold, the price target signals limited upside from here, and Musk’s increasingly ambitious—and controversial—compensation structures at Tesla and SpaceX underscore both the company’s outsized potential and its elevated governance risk profile.

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