Tesla May Face Darker Times if Musk Doesn't Balance Political Responsibilities, Wedbush Says

MT Newswires Live04-02

Tesla (TSLA) Q1 deliveries indicate that the company faces darker times if Elon Musk does not balance his CEO role with political responsibilities, Wedbush said in a note emailed to clients on Wednesday.

According to Wedbush analysts, Tesla's Q1 deliveries of 337,000 missed consensus estimates of 352,000 due to demand softness across Europe, the US and China amid the ongoing brand crisis.

The analysts said they see the company leading the autonomous market in the US and worldwide with the rollout of unsupervised FSD, "kicking off the autonomous era at Tesla that we value at $1 trillion alone on a sum-of-the-parts valuation."

Wedbush remains bullish on the EV maker for the long term but describes the current crisis as "primarily self-inflicted," and Musk "needs to get his act together, or else, unfortunately, darker times are ahead for Tesla."

Wedbush retained its outperform rating on the stock and maintained a 12-month target price of $550 per share.

Shares fell by over 1% in early Wednesday trading.

Price: 266.03, Change: -2.43, Percent Change: -0.91

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