Tesla Stock: $910 Price Target And Equal-Weight Rating
The shares of Tesla Inc$Tesla Motors(TSLA)$ have received a $910 price target from Wells Fargo. And Wells Fargo analyst Colin Langan assigned the company an “Equal-Weight” rating.
Langan noted that if the proposal from Tesla CEO Elon Musk to buy Twitter is successful, then there are two concerns from a shareholder perspective:
1.) Tesla is currently in the early days of ramping up two factories in Austin and Berlin, which would likely double the global capacity. And running Twitter would be a possible distraction for a CEO that already has a full plate
2.) The takeover financing terms are unclear and Musk would need $39 billion to complete the deal. Most of Musk’s liquid assets are his Tesla shares valued at $170 billion. So there is a risk of Musk deciding to sell more Tesla shares to fund the takeover, which could put pressure on the stock.
While the Twitter acquisition offer does not have an impact on Langan’s long-term view. But he said that concerns about Musk’s focus and the potential need to sell shares would likely put pressure on the Tesla shares near term.
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