Tesla stock losses $575b amid Musk's 'Twitter Circus'
Tesla Inc shares sank to an 11-month low on Tuesday adding to a flurry of concerns for its chief Elon Musk—even as one of the firm's staunchest bulls doubled down on its massive investment.
Stocks fell 7% to $628 while pushing the stock down nearly 49% from its all-time high in November and wiping over $30 billion from Tesla's market capitalization, Forbes reported.
Currently, its market size has dropped to $650 billion from a peak of more than $1.2 trillion, after losing a whopping $575 billion recently.
Daiwa analyst Jairam Nathan on Tuesday morning lowered his price target for Tesla shares to $800 from $1,150—telling clients Covid lockdowns in Shanghai, where the electric-vehicle maker operates its so-called Gigafactory, as well as supply issues impacting its Austin and Berlin plants, will cut deeper into earnings than previously expected.
Daiwa analyst Jairam Nathan on Tuesday morning lowered his price target for Tesla shares to $800 from $1,150—telling clients Covid lockdowns in Shanghai, where the electric-vehicle maker operates its so-called Gigafactory, as well as supply issues impacting its Austin and Berlin plants, will cut deeper into earnings than previously expected.
Nathan forecasts the headwinds will push deliveries this year down by 180,000 vehicles, meaning Tesla will deliver 1.2 million vehicles this year, as opposed to the 1.4 million units previously expected.
The note comes one day after Wedbush analyst Dan Ives cautioned Twitter's shareholder meeting this week will "surely kick off some more fireworks" between Musk and the social media firm's board, adding to the "major overhang" as investors worry that the proposed takeover could divert his attention from Tesla.
"Tesla investor patience is wearing very thin," Ives said about the resulting back and forth, with Musk suggesting he'll lower his offer due to concerns about bots on Twitter, while the company's board says it won't alter the deal.
