Is it all just a shell game?
‘There’s something happening here, and there’s a shell game that Elon Musk has going on... Obviously he is a genius and this is a board that considers him to be a genius. Yet we see he’s disappointing on so many fronts.’ That’s how Jeffrey Sonnenfeld, a senior associate dean at the Yale School of Management, views the Tesla CEO’s performance of late.
Sonnenfeld explained to CNBC on Tuesday that Musk tends to point to new product ventures, like autonomous taxis or submarines, to distract from Tesla’s “demand saga, departure issues ” and “debt issues.” Read: Elon Musk says his ‘Space Mountain’ rocket ride could eventually take passengers anywhere on Earth in under 20 minutes
Wedbush Securities analyst Dan Ives, who was part of the interview, has a neutral rating on Tesla TSLA, -1.15% with a 12-month price target of $230. Shares recently changed hands at $223, coming off a strong performance in June, but have lost about a third of their value over the full year. “What we’re cautious on is potentially another leg down, specifically on that guidance number,” Ives said. “I think they’re going to have to rip the Band-Aid off and lower guidance on units for the year.” Shawn Langlois Shawn Langlois is an editor and writer for MarketWatch in Los Angeles. Follow him on Twitter @slangwise.
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