Elon Musk must “pull himself together” to protect the Tesla brand – Loup Ventures
Win McNamee/Getty Images
Loup Ventures analyst Gene Munster said Wednesday that Elon Musk’s fling with Twitter poses a risk to Tesla (NASDAQ:TSLA), as the public perception of the billionaire is the cornerstone of the electric vehicle maker’s brand.
“Elon is the trademark of Tesla. He needs to pull himself together. He’s made these mistakes of running away many times and he needs to tighten the message,” the founder and managing partner of Loup Ventures told CNBC.
You’re here (TSLA) shares fell to new 52 week lows in recent days amid concerns that CEO Elon Musk has lost 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 pointed out that recent headlines about Musk’s leadership on Twitter have weighed on the Tesla brand.
“I think what Elon does on Twitter hurts the brand. [at Tesla]”, said the Loup Ventures analyst. “It’s going to cause long-term damage if he doesn’t right the ship.
Looking more closely at the stock’s performance, TSLA lost more than 50% of its value in the past year and fell below $500 billion in market value during Tuesday’s session. TSLA also hit a 52-week low of $155.88 early in Wednesday’s session, before bouncing back to sit around $159.41 in intraday action.
Earlier today, Goldman Sachs lowered its price target on Tesla (TSLA) stock from $305 to $235. However, the company maintained its buy rating on a positive long-term outlook. Goldman analysts estimate 420,000 deliveries in the fourth quarter, down from earlier expectations of 440K.
Munster isn’t the only one worried about Musk’s distracted attention. On Monday, the old Tesla (TSLA) Board member Steven Westly raised fears Musk will stretch.
For more analysis on TSLA, see why SA contributor Bill Maurer says, Tesla gets worse as demand falters.