Musk’s ‘moment of truth has now arrived,’ says Wedbush

Wedbush analyst Daniel Ives says “the moment of truth has now arrived” for Elon Musk and Tesla with next week’s earnings call “one of the most important moments in the company’s history.” For the first time, “many long time Tesla believers are giving up on the story and throwing in the white towel,” the analyst tells investors in a research note. The firm says the miscalculation of demand erosion in China has “been a gut punch to the bull thesis,” while the Model 2 versus Robotaxi debate “has taken on a life of its own.” Wedbush notes that while it and the Street are expecting a “rip the band-aid off quarter and a softer outlook,” Musk needs to do five things on the conference call to start to change the narrative in the Tesla story: Reverse the negative growth trend in China, give realistic guidance for the Street for 2024, come out with the Model 2 in the next 12 to 18 months, address artificial intelligence initiatives at Tesla and the 25% ownership comment from a few months ago, and announce an AI day. “The clock has struck midnight for Musk to lay out the strategic plan for the future,” contends the analyst, who keeps an Overweight rating on Tesla with a $300 price target.