EV maker Tesla (NASDAQ:TSLA) is languishing at 52-week low levels and the stock has more hangovers than it started the year 2022 with.
While the Twitter deal is finally done and dusted, multiple issues are gnawing at its Chief Twit’s attention. The company has cut nearly half of its staff and is pushing for rapid changes with the lowered capacity. Some former Twitter employees have already sued Twitter over the layoffs.
Now, the Techno King has used Twitter to urge voters to vote Republican in the midterm elections in the U.S. casting doubts over the social network’s neutrality.
Next, Tesla has shuttered its first showroom in China (its second-largest market) after earlier slashing prices for its Model 3 and Model Y vehicles in the country. Tectonic political changes in China coupled with the strict COVID-19 lockdowns continue to impact demand in the country.
Not surprisingly, Tesla’s vehicle sales in china for October saw a 13.75% drop sequentially.
Further, while Mr. Elon Musk channels his energy into Twitter, his $56 billion pay at Tesla is under trial under allegations that he is being enriched without devoting his full time to the EV manufacturer.
The trial is set to begin on November 14 in the same court that saw Musk’s takeover battle with Twitter. Essentially, the development boils down to whether Mr. Musk can keep his focus on Tesla while other ventures and endeavors make a beeline for his attention and time as well.
Bernstein’s Toni Sacconaghi, in the meantime, has reiterated a Sell rating on the stock alongside a $150 price target.
This indicates a 20.94% potential downside for the stock. That’s on top of a 71.7% decline in the stock price year-to-date.
But then, Mr. Musk has been known to prove naysayers wrong in the past and where the stock goes remains to be seen.
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