Tesla Navigates Legal Setback and Major Energy Sector Ambitions

Tesla CEO Elon Musk found liable for misleading Twitter shareholders in a multibillion-dollar case, while the company plans a massive $2.9B push into domestic solar manufacturing.

Tesla's CEO Elon Musk faces a significant legal defeat that could carry a multibillion-dollar price tag, even as the company quietly orchestrates a massive expansion of its energy business. A U.S. court ruling on Friday found Musk liable for misleading Twitter shareholders, while separate corporate plans reveal a multi-billion dollar push to establish domestic solar manufacturing capacity.

Court Rules Against Musk in Twitter Acquisition Case

A federal court in California delivered a unanimous jury verdict against Elon Musk concerning statements made during the acquisition of the social media platform Twitter. The court determined that tweets posted by Musk in May 2022, which suggested the $44 billion deal was on hold, were materially false and misled investors. Legal representatives for the plaintiff shareholders have estimated the damages from this action could reach $2.6 billion. This ruling marks a notable legal setback for the Tesla chief executive. His legal team has announced plans to appeal the decision, noting that the jury dismissed the broader allegation of systematic fraud.

A Multi-Billion Dollar Bet on U.S. Solar Manufacturing

Parallel to these legal proceedings, Tesla is advancing ambitious plans for its energy division. The company intends to purchase solar module production equipment valued at $2.9 billion from Chinese suppliers, including Suzhou Maxwell Technologies. The strategic objective is to establish a manufacturing capacity of 100 gigawatts on American soil by the end of 2028.

The machinery is slated for delivery to Texas before autumn, where Tesla aims to anchor its domestic solar production hub. This plan, however, encounters a potential regulatory hurdle. While the equipment is exempt from U.S. tariffs until the end of 2026, it requires an export license from Chinese authorities. Escalating trade tensions between Washington and Beijing could therefore delay or even obstruct this critical initiative.

Energy Emerges as a High-Margin Growth Engine

Tesla's aggressive move into solar manufacturing aligns with the strong performance of its broader energy segment. In 2025, the division recorded a landmark year, deploying 46.7 gigawatt-hours of new storage capacity. With a gross margin approaching 30 percent, this business is nearly twice as profitable as the company's core automotive operations. This strategic positioning directly targets the surging electricity demand, largely fueled by the rapid expansion of artificial intelligence data centers.

Investors reacted cautiously to this mix of news on Friday. Tesla shares closed the trading session at €318.85, reflecting a decline of 3.14 percent.

The stock's near-term trajectory now appears tied to two specific developments. The outcome of the appeal process in the Twitter shareholder lawsuit is one key variable. Simultaneously, market observers await the crucial export approval from Chinese regulators for the solar production equipment, a necessary step for Tesla's energy expansion plans.