Tesla Inc. (NASDAQ:TSLA) bull and Wedbush analyst Daniel Ives, who has been highly critical of Elon Musk’s Twitter buy, said on Thursday he is removing the electric vehicle maker from the firm’s “Best Ideas” list.
Bullish View Intact: Ives maintained an Outperform rating on Tesla shares and lowered his price target from $300 to $250. The bullish view is based on the massive EV transformation that is currently in play, he said.
Future Tense For Tesla Investors: Tesla investors will likely face a very nervous few months ahead, as they are the ones taking a hit from Musk’s “Twitter antics,” the analyst said.
“The stock now is deep in the investor penalty box until deliveries hit in early January and we get a better sense of the 2023 delivery/production trajectory,” Ives added.
Musk’s attention shifting from Tesla to the social media platform, and the Twitter “lightening rod of controversy” on a daily basis will begin to negatively change the Tesla brand globally, Ives said.
Tesla, according to the analyst, is the golden child of Musk’s empire and has transformed the world over the past decade just like how Apple Inc. (NASDAQ:AAPL) did with its iPhone.
The Tesla CEO’s “grit and strategic vision” has helped the EV maker navigate through enormous challenges and it is now sitting on top of the peak of the mountain, in a massive position of strength, the analyst said. With his Twitter misadventure, Musk has managed to do what bears have unsuccessfully tried for years, he added.
Musk has crushed Tesla stock by his own hand, the analyst said.
Since the Twitter deal closed, Tesla stock has fallen about 25%. Ives also highlighted the lingering concerns over further offloading of shares by Musk and also the financial resources Twitter may need to stay afloat.
“This is a pivotal few months ahead as the Twitter circus show is slowly starting to impact the pristine EV brand of Tesla and this could impact demand down the road in this EV arms race where brand/perception are of the utmost importance,” Ives said.
Price Action: In premarket trading on Thursday, Tesla shares were marginally higher at $177.68, according to Benzinga Pro data.
Read Next: How To Invest In Tesla (TSLA) Stock
