What happened
Its CEO might have a multi-billion-dollar headache, but that didn't stop Tesla (TSLA -1.92%) bulls from going on an enjoyable little run Wednesday. Shares of the bellwether electric vehicle (EV) maker closed the day nearly 2% higher, against the marginal slump of the S&P 500 index.
So what
Those bulls don't seem very troubled by Tesla captain Elon Musk's troubles, or at least they were fully expecting the latest blow-up. Musk, as most people even remotely familiar with Tesla know by now, is being sued by Twitter in an attempt to compel him to follow through with his proposed $44 billion buyout of the company.
Investors obviously feel that Musk can manage what promises to be a whopper of a court case in addition to his CEO duties at Tesla.
Meanwhile, the latest developments concerning the company aren't explosive, Twitter lawsuit-level stuff, but they're worthy of note regardless. According to a report from Nikkei Asia, Japanese electronics mainstay Panasonic is planning to open its second U.S. EV battery factory. The output of the plant, which reportedly will be located in Kansas, is to be dedicated to products used to power Tesla's vehicles.
And Wednesday morning before market open, Truist Securities initiated coverage on Tesla with a buy recommendation, at a price target of $1,000 per share. Analyst William Stein wrote that "we believe the company's best days, in terms of volume production, product innovation, and, especially, AI innovations, are still down the road."
Now what
I think the big takeaway here is that many Tesla investors shrug off Musk's misadventures outside of the company. He's brash, eccentric, outspoken, and impulsive, but as long as none of this harms Tesla directly, shareholders aren't excessively concerned about such behavior.
