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Loup Ventures analyst Gene Munster said Wednesday that Elon Musk’s adventure with Twitter represents a risk to Tesla (NASDAQ:TSLA), as public perception of the billionaire stands as a cornerstone to the EV maker’s brand.
“Elon is Tesla’s brand. He needs to pull it together. He’s made these mistakes about running off at the mouth many times and he needs to tighten up the message,” the Loup Ventures founder and managing partner told CNBC.
Tesla (TSLA) shares have fallen to new 52-week lows in recent days amid concerns that CEO Elon Musk has lost his focus following the billionaire’s high-profile purchase of Twitter.
Commenting on the concerns, Munster reiterated his overall bullish stance on TSLA. However, he also stressed that recent headlines about Musk’s leadership of Twitter have weighed on Tesla’s brand.
“I think what Elon is doing on Twitter is damaging the brand [at Tesla],” the Loup Ventures analyst said. “It’s going to cause some long-term damage if he doesn’t right the ship.”
Looking closer at the stock’s performance, TSLA has lost more than 50% of its value the past year and dipped below $500B in market value in Tuesday’s session. TSLA also touched a 52-week low of $155.88 early in Wednesday’s early trading, before bouncing back to sit around $159.41 in intraday action.
Earlier in the day, Goldman Sachs lowered its price target on Tesla (TSLA) stock from $305 to $235. However, the firm maintained its Buy rating on positive long-term prospects. The Goldman analysts estimate 420K deliveries in Q4, down from prior expectation of 440K.
Munster is hardly alone in his worries about Musk’s distracted attention. On Monday, former Tesla (TSLA) board member Steven Westly raised concerns that Musk may be stretching himself thin.
For more analysis on TSLA, see why SA contributor Bill Maurer says, Tesla is getting worse as demand weakens.
