Electric car builder Tesla Motors saw both highs and lows today, as a legal victory in Massachusetts was overshadowed by a steep drop in stock prices.

On the legal front, the company has been involved in legal battles states and their car dealer associations regarding Tesla’s online sales of its Model S. The list of states opposed to the company’s direct-sale approach includes Texas, Arizona, New York, New Jersey, and Minnesota among others.

Today, Massachusetts highest court ruled that the Massachusetts State Auto Dealers Association did not have legal standing in their efforts to block Tesla’s online sales. The plaintiffs had attempted to use a law known as Chapter 93B, claiming that Tesla was trying to avoid “Massachusetts law and to operate an automobile dealership without the required licenses.”

Justice Barbara Lenk said trade association members were not Tesla franchises and consequently 93B didn’t apply as she wrote the unanimous decision.“Chapter 93B is aimed primarily at protecting motor vehicle dealers from injury caused by the unfair business practices of manufacturers and distributors with which they are associated, generally in a franchise relationship,’’ Lenk wrote. “We therefore affirm the judgment of the Superior Court dismissing the plaintiffs’ action on the basis of lack of standing.’’

The legal victory didn’t stop the stock from seeing its single biggest one day loss since May. Ten days ago, Tesla’s CEO suggested that its stock was overvalued. Today, Morgan Stanley agreed and Tesla’s shares lost over 9% on the day. Tesla closed the day at $253.86 a loss of $25.34 per share down 9.08%.

And beyond Tesla Motors, they were even more bearish on the industry as a whole. “Tesla aside, nearly the rest of the auto industry’s efforts to successfully commercialize pure electric propulsion have fallen well short of the mark.”