Tesla shares collapse while Musk dabbles in Twitter
2022.12.20 14:06
Tesla shares collapse while Musk dabbles in Twitter
Budrigannews.com – Tesla shares (NASDAQ:) Inc fell nearly 6% on Tuesday after a number of brokerages reduced their price targets for the electric vehicle manufacturer’s stock, citing Elon Musk’s Twitter distraction as a potential risk.
With a low of $140.86, Tesla’s shares fell more than two years.
Investors, according to analysts, are concerned that Musk may need to sell more shares to fund Twitter, and that public opinion regarding the EV manufacturer’s acquisition of the social media company may harm the brand.
According to Evercore ISI, investors are concerned that the Tesla brand will suffer as a result of the company’s share price falling from $300 to $200.
Due to a “higher risk profile from the Twitter distraction,” Daiwa Capital Markets also lowered its price target from $240 to $177.
As Twitter users decisively voted in a poll for Musk to step down as chief executive of the social media platform, Tesla shares, which have lost nearly 60% of their value so far this year, closed down 0.2 percent on Monday.
On Monday, Oppenheimer analysts downgraded Tesla shares.
In light of decreasing demand in China, the price targets have been lowered ahead of Tesla’s quarterly deliveries report, which is anticipated for the beginning of January.
Daiwa predicted a 5% decrease in the company’s delivery estimate for 2023 and a 8% decrease in revenue per unit year over year.
Musk stated that Tesla aims to increase delivery volumes by 50% annually; however, the electric vehicle manufacturer stated that logistics issues will prevent it from meeting the goal this year.
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According to the China Passenger Car Association, passenger vehicle sales in China fell for the first time in six months in November and are anticipated to remain flat next year.
