A majority of investors are upset about the pressure Elon Musk’s Twitter purchase is putting on Tesla stock (NASDAQ:TSLA), according to a Morgan Stanley study.
About 75% of those who responded to the bank’s survey said the acquisition of Twitter (TWTR) was a major factor in the recent sharp decline in Tesla (NASDAQ:TSLA) share prices, and 65% said the deal will have a “negative or slightly unfavorable impact on Tesla’s business moving forward.” Comparatively, only 5% of respondents indicated that the acquisition is likely to benefit the automaker’s operations.
Equity analyst Adam Jonas said, “Our investor survey confirms our views that Elon Musk’s recent participation with Twitter has contributed to negative sentiment momentum in Tesla shares and could drive some degree of adverse downside skew to Tesla fundamentals.”
Tesla Stock Forecast
Nevertheless, Jonas kept his Buy rating for Tesla stock. If the stock fell to his bear case of $150, he suggested, there would be a tremendous upside to the stock. He believed that a further decline in price near that level would create a good “window of buying opportunity.”
He said, “Tesla is the only self-funded pure play EV brand we cover and has attained a unique position to ensure supply of the battery metals and related upstream supply necessary to construct EVs at multi-million unit scale.” We think that as EV pricing shifts from inflationary to deflationary, Tesla’s ‘gap to competition’ might potentially grow wider in a declining economic environment. The current price offers the largest potential upside to our $330 price goal that we have seen from Tesla in more than 5 years, or around 80%.
Immediately following Tuesday’s market opening, shares of the Austin-based EV producer increased by 0.55%. Find out more about the business’s attempts to reduce production costs.
Featured Image: Pexels @ Makara Heng
Author Jowi Kwasu 
