Tesla (TSLA) has now settled a lawsuit with California-based robotics company Zoox, Reuters reports. In March 2019, Tesla lawyers filed a lawsuit against four former employees and Zoox.
The company claimed that these employees stole proprietary information and trade secrets for developing warehousing, logistics and inventory control operations.
“Zoox acknowledges that certain of its new hires from Tesla were in possession of Tesla documents pertaining to shipping, receiving, and warehouse procedures when they joined Zoox’s logistics team,” Zoox said.
According to the settlement, Zoox will now pay Tesla an undisclosed amount and undergo an audit checking that none of its employees have retained or are using Tesla’s confidential information.
At the same time, Credit Suisse analyst Dan Levy upgraded TSLA from sell to hold while boosting his price target from $415 to $580. Levy believes that Tesla now “competitively has more edge in the transition to EV [electric vehicles] as coronavirus disruption will make it more difficult for legacy automakers to balance the long-term shift to EV in the face of near-term cycle disruption.”
Meanwhile Goldman Sachs analyst Mark Delaney re-initiated coverage of Tesla with a bullish Buy rating and $864 price target (22% upside potential). “We are positive on Tesla because we believe that the company has a signiﬁcant product lead in EVs, which is a market where we expect long-term secular growth,” Delaney told investors on April 14.
Tesla’s stock has now rallied 70% year-to-date, and 30% in the last five days alone. Overall, TipRanks reveals that analysts have a Hold consensus on Tesla stock with a $511 average analyst price target. Due to the stock’s recent rally, this indicates a 28% drop from current levels. (See Tesla’s stock analysis on TipRanks)
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