Significant investors in the leading American electric vehicle manufacturer Tesla believe that its CEO Elon Musk‘s purchase of Twitter will have a long-term detrimental effect on the company, as per Electrek.
For instance, the $44 billion Twitter deal was paid for by the CEO selling shares in Tesla (TSLA) worth billions of dollars. Without a doubt, the sale of the TSLA stock influenced a significant drop in the price of Tesla’s shares.
Apart from that, the perception of Elon Musk altering as a result of his antics on Twitter has another, less pronounced effect on Tesla.
Many people have lost faith in Musk’s ability to lead after he made remarks on conspiracy theories and urged his followers to vote Republican on Election Day.
Notably, CEOs of big companies do not frequently share conspiracies or urge people to support a particular political party. That said, these actions were not seen favorably by Tesla investors.
Morgan Stanley’s survey for Tesla investors
In order to better understand the perspective of Tesla investors on the situation, Morgan Stanley has surveyed its clients who own Tesla stock.
“Our investor survey reinforces our views that Elon Musk’s recent involvement with Twitter has contributed to negative sentiment momentum in Tesla shares and could drive some degree of adverse downside skew to Tesla fundamentals.”
Analyst Adam Jonas’ note to clients today
In the study, a substantial number of Tesla investors thought the impact would continue to be detrimental:
Nonetheless, Morgan Stanley continues to have a bullish stance on Tesla’s shares since they think that at its present valuation, there are sizable upsides:
“Tesla is the only self-funding pure play EV name we cover and has achieved a unique position to secure supply of the battery metals and related up-stream supply necessary to produce EVs at multi-million-unit scale. In a slowing economic environment, we believe Tesla’s ‘gap to competition’ can potentially widen, particularly as EV prices pivot from inflationary to deflationary. The current price offers approximately 80% potential upside to our $330 price target which is the highest upside to target we have seen from Tesla in over 5 years.”
Morgan Stanley
This morning, the price of a share of Tesla (NASDAQ: TSLA) is hovering around $183.
