Tesla Gets 'steadfastly bullish' Look from Wedbush, as Twitter Overhang on TSLA is Exaggerated

Tesla TSLA still has a “steadfastly bullish” look from Wedbush analysts. The firm remains optimistic despite Elon Musk's Twitter distraction. Wedbush maintained Tesla with an Outperform rating with a $250 12-month price target.

Wedbush analyst Dan Ives, in a note to investors on Wednesday, said the firm is “steadfastly bullish” on the thesis that Tesla's value will rise over the next few years. He points out that Elon Musk is now distracted by Twitter, which hangs like a dark cloud over Tesla. However, as this cloud dissipates, the company's share price will rise.

Wedbush maintained Tesla with an Outperform rating with a $250 12-month price target, implying ~ 40% upside potential on the stock over 2023.

Ives wrote that Tesla's Twitter overhang is comprised of three factors:

1. Fear of Musk selling more stock to fund Twitter's red ink.
2. A brand decline for Musk being associated with Tesla.
3. Musk's attention being focused on Twitter instead of Tesla.

However, Ives stressed that the Twitter overhang on Tesla is exaggerated. Despite all these distractions, demand for the manufacturer's vehicles remains high, global production capacity is increasing, and Tesla will remain on track to deliver 2 million vehicles in 2022. Essentially, Tesla is on track to deliver between 430,000 and 450,000 units in the fourth quarter, and that should be a sign of confidence for Tesla bulls navigating the Twitter overweight situation, Ives said.

© 2022, Eva Fox | Tesmanian. All rights reserved.

_____________________________

We appreciate your readership! Please share your thoughts in the comment section below.

Follow @EvaFoxU

Legal Disclaimer --

This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.