Tesla Analyst Warns Situation Could Turn Uglier If Elon Musk Doesn't Change Course, Lists 10-Point Plan For Reversing Sentiment

Zinger Key Points
  • After a 70% drop, Tesla shares have bounced back in the past couple of sessions.
  • Tesla bulls have been reiterating their stance that the onus of setting the house in order remains mostly with Elon Musk.

Tesla Inc. TSLA shares have rebounded in the past two sessions after bottoming under the $109-level on Wednesday. A Tesla bull offered his take on what needs to be done if the recovery should sustain.

The Tesla Analyst: Wedbush's Daniel Ives has an Outperform rating and $175 piece target for the shares.

See Also: Best Electric Vehicle Stocks

The Tesla Thesis: If CEO Elon Musk doesn’t change direction, the situation at Tesla could turn uglier, Ives said in a recent note. The analyst listed 10 things Tesla investors wish for to turn sentiment around at the electric vehicle maker in 2023.

These include:

  • 1. Musk naming a CEO for Twitter by the end of January.
  • 2. The billionaire pausing stock sales and formally adopting a 10b5-1 plan just so to reassure investors there won’t be any more selling around the corner.
  • 3. Issue a conservative 2023 delivery guidance, with 35% growth looking like a more realistic goal as opposed to the current outlook for 50% growth.
  • 4. Musk turning his attention back to Tesla, as he is the “heart and lungs” of the company.
  • 5. Announce that Cybertruck will begin deliveries by the end of 2023.
  • 6. Change the composition of the board of directors, drawing in people with some more experience in tech and EV leadership.
  • 7. Announce a major stock buyback program.
  • 8. Increase transparency around financial metrics and margin structure.
  • 9. Musk remaining apolitical on Twitter, as his political views are affecting Tesla’s brand image.
  • 10. Lay out a strategic plan for Twitter as currently, Tesla investors fear that Twitter bleeding more money could necessitate Musk selling more stock.

Ives recommended that Twitter considers a three-year strategy once a new CEO is appointed, with the potential options including turning it into a Super App or like WeChat 2.0.

Price Action: Tesla closed Thursday’s session at $121.82, up 8.08%, according to Benzinga Pro data.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorNewsReiterationAnalyst RatingsTechTrading IdeasDaniel Iveselectric vehiclesElon MuskEVstwitterWedbush
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!