Shares of Tesla Inc fell nearly 6% on Tuesday after a string of brokerages cut their price targets on the electric carmaker’s stock, citing distraction from Elon Musk’s Twitter feed.
Tesla shares hit a more than two-year low of $140.86.
Analysts said investors were concerned that Musk may need to sell further stock to fund Twitter, and that sentiment around buying the social media company could damage the electric carmaker’s brand.
Evercore ISI cut its price target on the company’s stock to $200 from $300, saying investors are concerned about damage to the Tesla brand.
Daiwa Capital Markets also lowered its price target to $177 from $240, citing “higher risk of Twitter distraction.”
Tesla shares, which have fallen nearly 60 percent so far this year, closed down 0.2 percent on Monday as Twitter users voted decisively in polls for Musk to step down as chief executive of the social media platform.
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Analysts at Oppenheimer downgraded Tesla stock on Monday.
Tesla lowered its price target ahead of its quarterly delivery report in early January due to weak demand in China.
Daiwa lowered the company’s 2023 delivery forecast by 5% and forecast an 8% year-over-year decline in revenue per unit.
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Musk has said Tesla is aiming for a 50% increase in annual deliveries, but the electric carmaker has said it will miss that target this year due to logistical issues.
Passenger car sales in China fell for the first time in six months in November and are expected to remain flat next year, the China Passenger Federation said.
First published date: December 21, 2022 at 11:35 AM CST