With Elon Musk continuing to stir up one controversy after another amid his tenure as Twitter boss, Wall Street sentiment surrounding electric car maker Tesla appears to have been completely divided. This was particularly noticeable for Oppenheimer and Deutsche Bank, the former downgrading TSLA and the latter maintaining a bullish stance on the EV maker.
In a note to clients Monday, Oppenheimer analyst Colin Rusch downgraded Tesla stock from “Outperform” to “Perform.” The analyst directly cited Musk’s activities on Twitter in his note, noting that the CEO’s challenges regarding the social media company have left sentiment toward Tesla stock “severely damaged.” Rusch may be right, given that since Musk acquired Twitter in late October, TSLA shares are down about 30%.
“The combination of Twitter’s unclear monetary needs and Mr. Musk’s diminishing options for meeting those needs amid the public backlash caused by the enforcement of inconsistent standards for Twitter users, in particular the ban on select journalists, is pushing us to the sidelines on TSLA. We believe the increase in negative sentiment on Twitter could to continue in the long term, which limits its financial performance and becomes an ongoing burden for TSLA.
“We see the potential for a negative feedback loop of advertisers and Twitter users leaving due to inconsistent standards leading to increased funding needs that could drive TSLA sales at a time when Tesla’s competitive environment is heating up,” the analyst noted.
On the other hand, analysts from Deutsche Bank noted on Monday that they maintain a “buy” rating and a $355 target price for TSLA shares. Unlike Oppenheimer, who seemed to focus on Musk’s Twitter issues, Deutsche Bank’s analysts seemed to focus mostly on Tesla itself, such as the opportunities presented by the inflation-lowering law and upcoming programs for the electric car maker.
Tesla expects the IRA to be a meaningful tailwind for the company, starting Jan. 1. The company believes most of its US cars should qualify for the $7,500 consumer tax credit, and Tesla will also receive significant incentives from battery manufacturing in the US. It should The manufacturing lot is $45/kWh for battery cells and packs made in-house (10 GWh of pilot line in Fremont, ramping up Austin capacity as fast as we can), and we think some of that could be shared with Panasonic for batteries made through a collaboration in Nevada ( There is no JV).
Tesla is particularly focused on its “game-changing” next-generation platform which, in our view, should support many other vehicles and segments, in addition to robotics, and is targeting $20,000 cost of goods sold per vehicle; development is advanced, standard operating procedures The target is 2024,” the analysts noted.
Disclosure: I’m a TSLA tall.
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