Home Business Tesla stock bulls and bears react to Elon Musk’s $700 billion crash. Here’s what Morgan Stanley, Citi and others say could happen next

Tesla stock bulls and bears react to Elon Musk’s $700 billion crash. Here’s what Morgan Stanley, Citi and others say could happen next

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Elon Musk, CEO of Tesla.Alex Kantrowitz

  • Despite a market crash that wiped out nearly $700 billion in value from its peak a year ago, analysts aren’t complaining about Tesla.

  • In fact, even a prominent Tesla bear has pushed the stock higher, saying it’s likely bottomed out.

  • “We believe the year-to-date cut has struck a balance between near-term risk and return,” said Citi analyst Itai Michaeli.

Tesla stock plunge wiped out Market value of about $700 billion From its peak a year ago, Wall Street is starting to say enough is enough.

In fact, even a prominent Tesla bear has upgraded the stock from “sell” to “neutral,” saying it’s likely bottomed out.

“We believe the year-to-date cuts balance short-term risk and return,” Citi analyst Itai Michaeli said in a note Wednesday.

Here are the latest comments about Elon Musk’s Tesla from companies like Citigroup, Morgan Stanley and Wedbush:

Citigroup analyst Itai Michaeli

In addition to upgrading Tesla stock, Michaeli raised his price target to $176 from $141.33.

“Certainly, macro/competitive concerns are likely to remain overhanging with capacity increases, but as we wrote earlier, in a hard landing scenario, Tesla’s long-term competitive The position could also be improved and potentially further strengthened. [President Joe Biden’s inflation reduction act].”

Morgan Stanley analyst Adam Jonas

Meanwhile, Tesla bull Jonas said in a report Wednesday that the stock was approaching his “bear case” price target of $150, indicating a potential buying opportunity at a steep discount. .

He rates Tesla stock as “overweight” with a price target of $330. While the Twitter acquisition remains a distraction for Musk and a potential risk for Tesla investors, Jonas expects the company to grow sales 37% next year, generate $15 billion in free cash flow and generate $15 billion in free cash flow. He said the company will strengthen its position as the world’s top electric vehicle. Manufacturer.

“We believe Tesla’s ‘competition gap’ could widen, especially as EV prices turn from inflation to deflation,” he wrote. “Regarding (the Inflation Control Act), I believe Tesla is by far the best-positioned OEM in terms of potential eligibility for sales tax and production deductions.”

Kathy Wood, CEO of Ark Investments

Wood is a Tesla bull, setting a $4,600 price target earlier this year before the stock split. In an interview with Bloomberg TV on Tuesday, she echoed her optimism.

“A lot of people are saying, ‘Aren’t you worried about Tesla?’ We believe that by 2027, 85% to 95% of all cars sold on the market will be in the world. That’s autopilot. [Elon Musk] We are currently working on self-driving cars and we think it will work. ”

“We think Tesla will. [autonomous] in a bigger sense. ”

Wedbush Analyst Dan Ives

Ives has been bullish for years, but he’s been less bullish recently after excluding Tesla from Wedbush’s “best ideas” list earlier this month due to its Twitter takeover.

In a new memo, he elaborated on the “Twitter overhang” as a risk factor for Tesla stock.

“The problem is that Twitter’s PR Twilight Zone is happening to the world and advertisers are staying at bay, while content moderation’s masked wildcard is front and center, while masked ‘key person risk’ “A perceived overhang is an actual overhang. It will affect Tesla’s stock and will not abate.”

Ives also cited three key risk factors for both stocks and shareholders.

1. “Fear that Musk will sell more shares to fund Twitter’s red ink.”

2. “Tesla-Related Musk Brand Degradation.”

3. “For now, Musk’s focus is on Twitter, not Tesla.”

Read the original article at business insider

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