While the stock market edged higher on Thursday after better-than-expected inflation reports, a former bullish Tesla analyst turned sour on the stock during the recent slump, blaming CEO Elon Musk for souring investor sentiment. Because he seems to be focused and plowing the money into – Twitter.
In a morning note to clients, Wedbush analyst Dan Ives slashed the firm’s price target on Tesla shares to $250 — down 18% from its January target of $1,400 — and cautioned that Tesla’s price targets will increase over the next few months. Investors should be “very nervous.” The stock is down a whopping 43% since late September.
“Musk has essentially tarnished the Tesla story,” wrote Ives, adding that the billionaire’s “Twitter antics” have fueled the stock crash and could materially damage Tesla’s brand amid Musk’s controversy, Only to cut 50% of Twitter’s workforce Allegedly Requested some to return, and then last week once again sold shares of Tesla.
Citing last week’s sale of stock, including $3.9 billion, Ives lamented that Twitter had become a “money pit” for Musk and worries that the time he is taking to restructure the firm may be better at Tesla. Vehicle delivery, which could be spent, is expected to report in early January.
Despite rallying with the broader market on Thursday, shares of Tesla are down nearly 54%, falling to nearly $189 since hitting a high of more than $400 in January and losing $650 in market capitalization. More than a billion were wiped out.
Other analysts have expressed concerns as well: After Tesla reported third-quarter earnings (which beat expectations), Bernstein analyst Tony Sacconaghi told clients in a note that the quarterly conference call “didn’t sit well with him.” “Curt and almost dismissive,” calling the answers to several questions, repeatedly as Musk [made]
Very bold predictions about Tesla’s future.
Among those more optimistic, Bank of America’s John Murphy said third-quarter results “look at”[ed] Very good” and that the firm remains a “trailblazer” in the electric vehicle market as it raised its price target to $325 in a post-earnings note, up more than 70% from current levels.
“Love him or hate him, it was hard to deny Musk’s patience and strategic vision around Tesla. . . repeatedly been massively successful over the years . . . despite enormous challenges,” Ives said Thursday. Now Musk has managed to do what the bears have been trying unsuccessfully for years – crush Tesla’s stock on its own.”
Notable Tesla bull Cathy Wood is still optimistic about the stock, despite Tesla’s falling value. High-profile stock picker Arc Invest bought nearly 40,000 Tesla shares on Wednesday as shares hit two-year lows. inventory Ruins Its flagship fund has the second largest holding, with a market cap of approximately $550 million.
The Musk-Twitter saga began when the billionaire acquired a 9% stake in the firm in April and within weeks announced A bid to acquire it at a hefty premium will attempt to “end” the deal this summer. After a series of lawsuits in which Musk expressed concern about fake accounts, the acquisition In the end Musk took over as chief executive and promptly dissolved the company’s board and fired its CEO and chief financial officer. Last week, the Tesla chief shed some light on his struggles, saying Twitter was a “poorly managed business” that he bought “on the basis of what could become” and blaming activist groups for fueling advertisers’ concerns. ordained. platform.
Elon Musk has sold $3.9 billion of Tesla stock since Friday (Forbes)
Twitter’s security and privacy leaders quit amid chaotic takeover of Musk (Forbes)
‘Nothing worked’: Musk laments loss of Twitter advertisers and admits trying to back away from deal (Forbes)
Credit: www.forbes.com /