Wedbush analyst Dan Ives, in a note to investors on Wednesday, said the firm is “steadfastly bullish” on the thesis that Tesla's value will rise over the next few years. He points out that Elon Musk is now distracted by Twitter, which hangs like a dark cloud over Tesla. However, as this cloud dissipates, the company's share price will rise.
Wedbush maintained Tesla with an Outperform rating with a $250 12-month price target, implying ~ 40% upside potential on the stock over 2023.
Ives wrote that Tesla's Twitter overhang is comprised of three factors:
- Fear of Musk selling more stock to fund Twitter's red ink.
- A brand decline for Musk being associated with Tesla.
- Musk's attention being focused on Twitter instead of Tesla.
However, Ives stressed that the Twitter overhang on Tesla is exaggerated. Despite all these distractions, demand for the manufacturer's vehicles remains high, global production capacity is increasing, and Tesla will remain on track to deliver 2 million vehicles in 2022. Essentially, Tesla is on track to deliver between 430,000 and 450,000 units in the fourth quarter, and that should be a sign of confidence for Tesla bulls navigating the Twitter overweight situation, Ives said.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.