Tesla stock bulls and bears react to Elon Musk's $700 billion crash.  Here's what Morgan Stanley, Citi and others say could happen next

Tesla stock bulls and bears react to Elon Musk’s $700 billion crash. Here’s what Morgan Stanley, Citi and others say could happen next

  • Analysts aren’t lamenting Tesla despite a market rout that wiped nearly $700 billion in value from its peak a year ago.
  • In fact, even a renowned Tesla bear improved on the stock, saying it had probably bottomed out.
  • “We think the year-to-date pullback has offset the near-term risk/reward,” said Citi analyst Itay Michaeli.

Tesla’s stock plunge has wiped out nearly $700 billion in market value from its peak a year ago, and Wall Street is starting to say enough is enough.

In fact, even a renowned Tesla bear took the stock from “neutral” to “sell,” saying it’s likely bottomed out.

“We believe the year-to-date pullback has offset the short-term risk/reward,” Citi analyst Itay Michaeli said in a note Wednesday.

Here are the latest reviews of Elon Musk’s Tesla from companies like Citigroup, Morgan Stanley and Wedbush.

Father Michaeli, analyst at Citigroup

In addition to upgrading Tesla shares, Michaeli raised his price target to $176 from $141.33, although the new one is still below the shares’ last trading level as they jumped 8% to hit $183 on Wednesday.

“Certainly macro/competitive concerns will likely remain a surplus as capacity increases, but as we’ve written previously, in a hard landing scenario, Tesla’s long-term competitive position improves. probably also and perhaps further reinforced by [President Joe Biden’s inflation reduction act].”

Adam Jonas, analyst at Morgan Stanley

Meanwhile, Tesla bull Jonas said in a note on Wednesday that the stock was approaching its “bear case” price target of $150, indicating a potential buying opportunity at a steep discount.

He has an “overweight” rating on Tesla shares with a price target of $330. While the Twitter acquisition remains a distraction for Musk and poses a potential risk to Tesla investors, Jonas said the company is expected to increase sales by 37% next year, generate $15 billion in cash flow available and reinforce its status as the first electric vehicle in the world. maker.

“We believe Tesla’s ‘gap to competition’ has the potential to widen, particularly as EV prices shift from inflationary to deflationary,” he wrote. “As far as the (Curbing Inflation Act) goes, we think Tesla is by far the best OEM in terms of potential eligibility for consumption tax and production credits.”

Cathie Wood, CEO of Ark Investment

Wood has been a Tesla super bull and set a price target of $4,600 earlier this year ahead of his stock split. In an interview with Bloomberg TV on Tuesday, she reiterated her optimism.

“A lot of people say, ‘Aren’t you worried about Tesla?’ No, it’s not because of our work on electric vehicles, they’re grabbing a disproportionate share and will continue to do so in a market that we expect will be, by 2027, 85% to 95 % of all cars sold in the world It’s on autopilot It’s [Elon Musk] is now working on a standalone solution that we believe will work.”

“We think Tesla will [autonomous] in a much bigger way.”

Dan Ives, analyst at Wedbush

Then there’s Ives, who was a longtime bull but became less bullish recently when he removed Tesla from Wedbush’s “best ideas” list earlier this month due to the Twitter takeover.

In a new note, he elaborated on the “Twitter overhang” as a risk factor for Tesla stock:

“The problem is that while Twitter’s public relations twilight zone presents itself to the world and advertisers stay away while content moderation’s wildcard Musk takes center stage, the perceived overhang of the” key person risk “with Musk is a real overhang on Tesla stocks and relentlessly”,

Ives also listed three main risk factors for stocks and shareholders:

1. “Afraid Musk will sell more shares to fund Twitter’s red ink.”

2. “Deterioration of the Musk brand associated with Tesla.”

3. “Musk’s attention so far all focused on Twitter instead of Tesla.”

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