Tesla removed from broker’s top ideas over Twitter ‘fiasco’

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Tesla Inc. stock TSLA, -7.17% was removed from Wedbush’s Best Ideas list on Thursday, with analyst Dan Ives citing the overhang from Chief Executive’s entanglement with Twitter Inc. twtr. “In what has been a dark comedy show with Twitter, Musk has essentially tarnished the Tesla story/stock and is starting to potentially impact the Tesla brand with this ongoing Twitter train wreck disaster,” Ives wrote in a note to clients. “From selling Tesla stock again and again, to the PR nightmare that Twitter has become, cutting 50% of employees and then needing to bring some back, Musk’s attention focus from Tesla to Twitter, and ultimately the fear that this Twitter lightening rod of controversy on a daily (almost hourly) basis starts to negatively change the Tesla brand globally.” Tesla IS Musk, Ives wrote, and it has made him the richest man in the world. Tesla is the golden child of his empire, and he’s changed the auto world much in the way that Apple’s AAPL, -3.32% iPhone changed phones. But now he has managed to do what short sellers tried and failed — to crush Tesla’s stock despite the EV company being in a position of strength. Ives said he still believes in the EV story as a longer-term play, but Tesla’s roughly 25% selloff since the Twitter deal is “an agonizing cycle for investors to navigate and has put massive pressure on the stock as its a Boy Who Cried Wolf narrative shaping up.” Ives is sticking with his outperform rating on Tesla stock but lowered his price target to $250 from $300 to reflect the overhang. Tesla was slightly higher premarket but is down 50% in the year to date, while the S&P 500 SPX, -2.08% has fallen 21%.

This article was originally published by Marketwatch.com. Read the original article here.

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