Is Tesla Stock Crash Over? Analysts Think It Might Be—Twitter Backlash Now ‘Overdone’

In a Wednesday morning note to clients, Morgan Stanley analyst Adam Jonas said Tesla’s recent collapse—which has pulled prices down 54% this past year—may present an “emerging… value opportunity” for investors, as current prices of about $170 approach a projected worst-case of $150.

Jonas stopped short of predicting exactly how soon the stock may recover, but reiterated a price target of $330 for Tesla—suggesting shares could skyrocket some 94% over the next year.

In a morning email, Wedbush analyst called Tesla’s stock plunge “overdone,” blaming it on concerns Musk may sell more Tesla stock to fund Twitter’s cash burn and Musk’s “brand deterioration” as investors worry he’s “all focused on Twitter instead of Tesla for now.”

Nevertheless Ives, who reiterated a bullish price target of $250, says Tesla remains on track to produce 2 million vehicles this year—a “very impressive” feat considering a “jittery” macroeconomic backdrop that has prompted many electric vehicle firms to cut costs.

“Musk must reassure investors … the Twitter soap opera will not interfere with the longer term Tesla growth story,” says Ives, adding the Twitter “overhang” will likely weigh on Tesla stock at least until the carmaker reports fourth-quarter earnings in late January, which Wedbush believes could reignite confidence among investors.

Citi analyst Itay Michaeli struck a similar tune Wednesday: Though Citi has issued one of the lowest Wall Street price targets for Tesla—at $176—Michaeli upgraded Tesla shares to neutral in a morning note, telling investors the stock’s pullback has made prices much more reasonable.