Tesla share price target cut – CEO Musk ‘distracted’ by Twitter deal

[MongiIG]

Tesla perma-bull Dan Ives, from Wedbush Securities, has cut his long-term outlook on shares of the stock from $1,400 to $1,000. This as investors become more concerned about Elon Musk’s distraction around his bid for Twitter.

 

 

 Jeremy Naylor | Writer, London | Publication date: Friday 20 May 2022 

 

Tesla/Twitter deal

Tesla has been in the minds of investors and traders over the last few weeks, mainly because of the founder and chief executive, Elon Musk, moving on to Twitter.

Now, many are complaining that the stock of Tesla has been upset because of the fact that Musk has now diverted a lot of his attention to how he goes about buying the social media giant.

Tesla - technical analysis

Let's take a look at what's happening with Tesla stock. It's just started trading all-sessions on the IG platform on this Friday morning and you can see here we've got another day of gains.

Yesterday, when all was said and done, we did actually see a rise on the session, but in fact, it did break, once again, below this line of support that was established from the 24th February at $691.68.

Now, the fact we saw a recovery yesterday, part of that I suspect was because of what we had been hearing from some investors, some high-profile investors in Tesla, calling on the company to buy back shares at this low level to give the market confidence that the company's got confidence in its future and in the fact that the shares have been beaten up too much.

In the last week or so we've seen two breaks of this line of support, and that took us down at one point to levels in the market not seen since August 2021. Now, Tesla is still very highly valued. It's valued as a tech company, not so much as an ordinary car manufacturer. Because it is valued as a tech company it does have this high rating.

All of this comes as a high-profile Tesla bull, Daniel Ives, an analyst at Wedbush, cut the target share price of Tesla to $1,000 a share due to China's production disruption and warning of a distraction risk from Musk's deal over Twitter.

Now, this blue dotted line is the $1,000 per share level that Dan Ives has cut his price target to. So, it's well above where we are but nonetheless, when you get a perma-bull like Ives cutting his outlook, that does ring alarm bells at the company.

That being said, it’s looking as though today could well be a day where we see gains in Tesla stock for the second day in a row.