A key analyst lowered the price target for You’re here (TSLA) shares on Thursday. Meanwhile, scrutiny of Elon Musk has intensified since he took over Twitter, with President Joe Biden suggesting on Wednesday that the foreign investment in Musk’s purchase of Twitter was worth looking into.
Wedbush analyst Daniel Ives, who has long been bullish on Tesla, lowered the company’s price target for Tesla shares from $300 to $250. This reflects a “lower multiple associated with Musk’s overhang that is getting worse by the day,” Ives wrote.
“Sitting on top of the mountain with Tesla in a position of massive strength, Musk managed to do what the bears tried unsuccessfully for years,” Ives wrote. “Crushing Tesla’s stock on its own in what we view as a purely painful grim situation.”
Tesla stock fell 2% early on, before climbing 7.4% to 190.72 following inflation data in Thursday’s trade. Shares fell 7.2% to 177.59 on Wednesday, undercutting 2021 lows. TSLA shares are down more than 40% on the year, according to MarketSmith analysis.
Elon Musk revealed on Tuesday night that he sold $4 billion worth of stock in the first two weeks of November after he closed his $44 million Twitter deal.
Tesla stock has a composite rating of 44, out of 99. TSLA stock has a relative strength rating of 15. The EPS rating for Tesla stock is 75.
TSLA shares could also fall along with other stocks exposed to China following the intensification of Covid lockdowns there.
In a bid to woo customers in China, Tesla on Tuesday brought back an insurance subsidy for vehicles purchased through the end of the year. This follows a price drop in late October as the electric vehicle giant tries to stimulate demand amid increased production in China.
Distractions on Twitter
Musk took over Twitter on October 28. The Tesla CEO has cut about half of the social media site’s staff while tweeting frequently about his plans and politics. Musk also responded personally to customer complaints and suggestions.
Ives said on Thursday there were real concerns that Musk was distracted from running Tesla. The analyst added that he was concerned about damaging his image, which could affect the Tesla brand. Tesla stock is down about 25% since Oct. 28.
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“It’s a crucial few months ahead as the circus spectacle on Twitter slowly begins to impact Tesla’s pristine EV brand and it could impact demand in this EV arms race,” he said. writes Ives.
The Wedbush analyst added that it was a “dark comedy show with Twitter” and that Musk had “essentially tarnished Tesla’s story/stock and was beginning to potentially impact the Tesla brand. with this ongoing train wreck disaster on Twitter.”
Tesla Stock: Biden weighs in on Musk
At a White House press conference on Wednesday, President Biden was asked if he thought Musk posed a threat to the national security of the United States and whether any foreign government involvement in the purchase of Twitter was to be investigated.
“Elon Musk’s cooperation and/or technical relationships with other countries are worth considering. Whether or not he is doing anything inappropriate, I’m not suggesting,” Biden said.
“I suggest it is worth considering and that’s all I will say,” the president added.
Saudi Prince Alwaleed bin Talal has retained a large stake in social media company Twitter, and Qatar has also been involved in the $44 billion purchase of Musk from Twitter.
Please follow Kit Norton on Twitter @KitNorton for more coverage.
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