Wedbush lowers Tesla’s PT saying Twitter deal has been a “massive overhang” on the stock

Written by Cláudio Afonso | | LinkedIn | Twitter

Wedbush analyst Dan Ives lowered the firm’s price target on Tesla to $1,000 from $1,400 while maintaining the Outperform rating. On Wednesday, the analyst told CNBC that Musk’s plan to buy Twitter has been a “massive overhang” on the stock.

“.. Shanghai lockdowns have been an epic disaster so far in the June quarter and we expect Tesla stock to see modest delivery softness this quarter with a slower growth trajectory in the key China region into the 2H,” Ives said.

Regarding the Twitter deal, the analyst added that Elon Musk has “incurred a black eye” in the last few weeks”: “The way he’s handled this, I believe has been unconscionable,”

On Wednesday, S&P announced that Tesla was delisted from the ESG Index due to “falling behind its peers when examined through a wider ESG lens,” the report says. S&P Dow Jones Indices also removed Berkshire Hathaway, Johnson & Johnson and Meta from the list.

Tesla’s CEO quickly reacted on Twitter saying “ESG is an outrageous scam! Shame on S&P” followed by other tweet comparing Tesla’s results with Exxon which is rated a top ten on the list.

Earlier this week, the State Administration for Market Regulation said that Tesla China is releasing an over-the-air (OTA) update on 107,293 Model 3/Y produced from October 2021 to April 2022, due to to the non-fully cooled-down CPU on fast charging.

Written by Cláudio Afonso | | LinkedIn | Twitter