Stock Market Today, Dec. 22: Tesla Shares Jump After Court Reinstates Elon Musk Pay Deal

Tesla (NASDAQ:TSLA), electric vehicles and energy storage maker, closed Monday at $488.73, up 1.56% as shares continued to trade near record territory. Tesla IPO'ed in 2010 and has grown 38,483% since going public. Trading volume reached 86.6 million shares, roughly 1.4% above its three-month average of 85.8 million shares.

Monday’s move followed a Delaware Supreme Court ruling on Elon Musk’s compensation, ending a long legal battle. Investors are also positive about Tesla’s latest autonomous driving and robotaxi initiatives.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) added 0.64% to finish at 6,878, while the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 0.52% to close at 23,429. Within the automotive and energy space, industry peers Ford Motor Company (NYSE:F) slipped 0.07% and General Motors (NYSE:GM) rose 0.83%, underscoring how legacy automakers are navigating EV demand and profitability differently from Tesla.

What this means for investors

On Friday, a Delaware Supreme Court overruled a 2018 decision to block Elon Musk's pay package. The court ruled that Musk is entitled to stock-based compensation now valued at about $140 billion.

In addition to optimism around leadership continuity, Tesla investor sentiment got a boost last week. The EV maker said it is testing driverless cars is Austin with no humans on board. While concerns remain about softer EV demand, some Wall Street analysts, including Deutsche Bank (NYSE:DB) have upped their price targets for the stock.

Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.