Tesla Stock Bull cuts price target on China, warns of Twitter risk

  • Wedbush’s Dan Ives cut his price target on Tesla to $1,000 from $1,400 as COVID lockdowns in China slow auto production.
  • Stock bull Tesla added that Elon Musk’s Twitter offer might be too distracting.
  • “The Tesla’s ecosystem has never needed Musk so much with the worst supply chain crisis in modern history,” Ives said.

Wedbush analyst Dan Ives lowered his price target on Tesla stock as the ongoing COVID lockdowns crisis in China creates more production slowdowns and supply chain bottlenecks .

He’s still bullish on the electric car maker for the long term as new plants in Austin and Berlin drive future growth, but must recognize “a new reality for Tesla in China with headwinds plentiful in a larger macro context.” brittle”.

Ives said Wedbush is reducing its price target to $1,000 from $1,400 per share due to “bumps in the road” in China.

The country notoriously employs a “zero-covid” policy that seeks to eradicate the virus down to each singular case. It has already disrupted the production of automakers such as Toyota and Volkswagen.

Ives also pointed to Elon Musk’s Twitter lawsuit as another potential headwind for Tesla stock. On Tuesday, Musk demanded that Twitter prove its platform handles less than 5% of spam accounts, or risk Tesla’s CEO backing out of the deal.

“While Twitter’s situation has no theoretical impact on Tesla’s fundamental story, the risks of distraction for Musk (perception is reality) are hard to ignore at a time when the Tesla ecosystem is n ‘musk has never been needed more with the worst supply chain crisis in modern history,’ Ives warned.

James T. Quintero