Wedbush Securities analyst Dan Ives is maintaining his $550 price target for Tesla Inc. despite growing concerns over CEO Elon Musk’s involvement with the Department of Government Efficiency. Ives believes that the negative impact on the Tesla brand is being overestimated, stating that the “bark is way worse than the bite” in terms of brand issues and balancing time.
What’s Happening with Tesla’s Stock
Tesla’s stock has faced significant pressure since the presidential inauguration, declining by 20.64% from $424.07 on January 21. The company’s stock has shown resilience over the past year, gaining 78.87%, but recent developments have raised concerns about Musk’s divided attention.
Key Points to Consider
- Elon Musk plans to dedicate the next four months to DOGE initiatives, aiming to cut $2 trillion from the budget.
- Musk has been sleeping in his White House office due to the intensive workload.
- Dan Ives remains bullish on Tesla, believing that the negative impact on the brand is being overestimated.
- Matt Maley, Chief Strategist at Miller Tabak, expresses concerns about Musk’s divided attention and its potential impact on Tesla shareholders.
Impact on Tesla Shareholders
The concerns about Musk’s divided attention have sparked debate among market observers. While Ives remains optimistic, Maley suggests that Musk’s reduced focus on Tesla could impact product development, citing delays in key initiatives like the Robotaxi program and questions about the timeline for lower-priced vehicles.
Current Price Action
Tesla’s stock closed at $336.51 on Wednesday, up 2.44% for the day, with after-hours trading showing additional gains of 1.26%.
Conclusion
As the situation continues to unfold, investors will be closely watching Tesla’s stock performance and the impact of Musk’s involvement with the Department of Government Efficiency on the company’s brand and product development. Will Tesla’s stock continue to show resilience, or will the concerns about Musk’s divided attention take a toll on the company’s performance? Only time will tell.