• 3 hours How Climate Change Is Impacting Global Hunger
  • 6 hours Hacks, Bugs And Exploits: Growing Pains For The $4 Billion Blockchain
  • 8 hours Debunking The A.I. Productivity Myth
  • 24 hours Coca-Cola Hints At Cannabis Product
  • 1 day Saudi Wealth Fund Pumps $1B Into Tesla Rival
  • 1 day Major Financial Institutions Are Planning Crypto Products
  • 1 day Is A Market Meltdown Looming?
  • 2 days Is A Four-Day Workweek Feasible?
  • 2 days This Millennial Brokerage Is Coming To Tesla’s Rescue
  • 2 days $2.7 Billion In Assets To Be Auctioned Following Anti-Corruption Crackdown
  • 2 days Capital Churn, Avocado Toast And The Gold Standard
  • 3 days The New Ultra-Wealthy Benchmark Is $50 Million
  • 4 days Mastercard’s New Global Trade Hedge
  • 5 days Turkish Central Bank Finally Moves To Contain Inflation
  • 5 days U.S. Coal Exports At Risk As Hurricane Florence Nears
  • 5 days Universal Basic Income: Is This The Crypto End Game?
  • 6 days Poll: 80% Of Consumers Bullish On Bitcoin
  • 6 days UK Unicorn Eyes Flying Taxis By 2022
  • 6 days Zuckerberg Outlines Facebook's Plan To Combat 'Fake News'
  • 6 days Is Venezuela Privatizing Some Of Its Oil Fields?
This Millennial Brokerage Is Coming To Tesla’s Rescue

This Millennial Brokerage Is Coming To Tesla’s Rescue

Fee-free trading app Robinhood has…

Coca-Cola Hints At Cannabis Product

Coca-Cola Hints At Cannabis Product

Some of the biggest names…

Is A Market Meltdown Looming?

Is A Market Meltdown Looming?

It’s been over 55 days…

Oilprice.com

Oilprice.com

Writer, OilPrice.com

Information/Articles and Prices on a wide range of commodities: We have assembled a team of experienced writers to provide you with information on Crude Oil,…

Contact Author

  1. Home
  2. Investing
  3. Stocks

Tesla's Biggest Bull Bails After Musk Fiasco

Tesla

One of the biggest bulls on Tesla among analysts covering the stock is no longer recommending it as a ‘buy’, as he believes that Elon Musk’s erratic behavior in recent months is damaging the brand.

In a note to clients on Tuesday titled “No Longer Investable”, Nomura Instinet analyst Romit Shah said that while Nomura has been one of the most bullish on Tesla’s stock since it initiated coverage last October, the controversial behavior of Tesla’s chief executive is recent months has hurt the company and likely contributed to the senior management exodus.

Nomura cut its rating on Tesla to ‘neutral’ from ‘buy’, and has slashes Tesla’s price target to $300 from $400. The previous $400 target was the sixth-highest on Wall Street among 22 analysts, according to FactSet data.

“The issue though is the erratic behavior of CEO Elon Musk. During the second quarter, the switch seemingly flipped … We are worried that this behavior is tainting the Tesla brand, which in terms of value is most important,” Shah says in the note, as carried by CNBC.

The analyst cited Musk’s increased Twitter activity, the snubbing of analysts on a conference call when Musk called their questions “boring”, the NYT interview where Musk fell apart multiple times, and last week’s live video interview, during which Musk smoked marijuana.

Before that, Musk pronounced in early August that he would take Tesla private, but backtracked on that proposal two weeks later.

After last week’s live interview, Tesla’s stock tumbled on Friday, also due to the resignation of Chief Accounting Officer Dave Morton, who is quitting after just one month on the job. Related: The Death Of Retail In NYC

On Monday, however, Tesla’s stock bounced back after two positive analyst reports.

Baird analyst Ben Kallo confirmed his buy rating on Tesla, saying that the stock is still worth a buy “even with drama.”

Bernstein’s Toni Sacconaghi, for his part, said that Tesla’s below $300 share price was an “attractive near-term entry” point, but the analyst remains neutral on Tesla’s longer-term performance until investors see if Tesla can pull off Model 3 quality, quantity, and profit margins.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Safehaven.com

Back to homepage

Leave a comment

Leave a comment