Elon Musk Takes A Swipe At Analyst's Short Call On Tesla Stock: 'So Strong Contra-indicator Then'
Portfolio Pulse from Shanthi Rexaline
Bernstein analyst Toni Sacconaghi has recommended shorting Tesla (TSLA), with a price target of $150, citing potential faltering EV demand and increased competition, particularly from Chinese rivals. Tesla CEO Elon Musk responded to a Tesla enthusiast's criticism of Sacconaghi's track record by suggesting the analyst's negative view could be a strong contra-indicator. Tesla's aggressive pricing strategy has led to a decline in auto gross margins, and the company has not provided guidance on near-term margin trajectory. The recent launch of the Cybertruck and the full-self driving software face challenges including regulatory scrutiny and market skepticism.
December 09, 2023 | 7:43 pm
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Bernstein analyst Toni Sacconaghi's short call on Tesla with a $150 price target could influence market sentiment, potentially leading to short-term negative pressure on TSLA stock. Elon Musk's response may mitigate some of the impact by suggesting skepticism about the analyst's track record.
The recommendation to short Tesla by a prominent analyst based on expectations of declining EV demand and increased competition could lead to bearish sentiment among investors. However, Elon Musk's reputation and his dismissal of the analyst's track record could provide some counterbalance. The impact on the stock price will depend on how investors weigh the analyst's arguments against Musk's optimistic outlook and Tesla's recent performance challenges.
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IMPORTANCE 80
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