Tesla Inc. shares received a shot in the arm Monday after Wall Aspect twin carriageway analyst notes that instructed the most fresh selloff might perchance perchance perchance simply be a huge gamble to possess the stock at a low cost. Tesla stock is up 5.4% in Monday morning trading following Musk's latest comments and after a Baird analyst reiterated his bullish stance.
"We are anxious that this behavior is tainting the Tesla brand, which in terms of value is most important", wrote Romit Shah in a Tuesday research note.
The company, based in Palo Alto, California, has struggled to vault from a niche maker of expensive electric vehicles into a mass-market automaker. Over half a million individuals worldwide reserved the Tesla Model 3, and the all-electric vehicle manufacturer was not ready for that volume of demand.
Shah continues to believe that Tesla can out-innovate the competition and that the company may eventually be much bigger than it is today, but says it's better to remain on the sidelines until the company has better leadership.
In what could only be described as a dash of irony, Tesla recently received an optimistic outlook from a longtime critic as well.
"However, it is unclear to us that any of these are deal breakers for the stock".
"We see relatively little downside risk from fundamentals in the near-term, especially given somber expectations", the note said.
In the face of those changes, Musk posted a blog Friday, detailing a raft of new staff members joining the Tesla management team.
The email came at the end of a week in which the departures of three executives continued the company's high turnover rate among senior employees, and it follows questions about the company's financial health and Musk's decision-making that have persisted for months.
Moody's Investor Service downgraded Tesla's debt into junk territory in March, warning that the Palo Alto firm will not have cash to cover $3.7 billion (€3.2bn) for normal operations, capital expenses and debt that comes due early next year.
Tesla is under heavy pressure to build as many cars as it can as efficiently as possible, and taking two paint options out of the equation certainly seems like a reasonable move.
Disclosure: Author owns shares of Ford.