Tesla (TSLA) investors see the negative impact of Elon Musk’s Twitter acquisition lasting on the corporate going forward.
There’s little question that Elon Musk’s acquisition of Twitter had a direct negative impact on Tesla and its investors, considering that the CEO needed to sell billions of dollars price of Tesla (TSLA) stock to finance the $44 billion acquisition.
The sale of that TSLA stock likely contributed to a pointy decline in Tesla’s stock price.
There’s also a less tangible impact on Tesla and that’s the perception of Elon Musk changing through his antics on Twitter. Many individuals have reported losing faith in Musk’s leadership after he made statements like sharing fringe conspiracy theories and asking his followers to vote republican on Election Day.
Sharing conspiracy theories and urging people to vote for a particular party are things that you just generally don’t see from the CEO of major firms.
Now Morgan Stanley has surveyed its own clients who’re Tesla investors to grasp how they see the situation.
Analyst Adam Jonas wrote in a note to clients today:
Our investor survey reinforces our views that Elon Musk’s recent involvement with Twitter has contributed to negative sentiment momentum in Tesla shares and will drive some extent of antagonistic downside skew to Tesla fundamentals.
Interestingly, a robust majority of Tesla investors within the survey believed that the impact will keep being negative going forward:
Nevertheless, Morgan Stanley maintains a positive outlook on Tesla’s stock as they consider there are significant upsides based on the present valuation:
Tesla is the one self-funding pure play EV name we cover and has achieved a singular position to secure supply of the battery metals and related up-stream supply essential to provide EVs at multi-million-unit scale. In a slowing economic environment, we consider Tesla’s ‘gap to competition’ can potentially widen, particularly as EV prices pivot from inflationary to deflationary. The present price offers roughly 80% potential upside to our $330 price goal which is the best upside to focus on we now have seen from Tesla in over 5 years.
Tesla’s (TSLA) stock is barely up 0.3% this morning – trading at around $183 a share.
What about you? Do you are feeling like Musk’s Twitter antics are going to proceed having a negative impact on Tesla going forward? Tell us within the comment section below.