'Boy Who Cried Wolf:' Tesla Bull Says Elon Musk Losing Credibility As He Keeps Selling Shares Despite Promising 'He Is Done'

Twitter owner Elon Musk disclosed late on Tuesday that he has sold about $4 billion worth of shares in his electric vehicle company Tesla Inc. TSLA.

The Tesla Analyst: Commenting on the development, Wedbush analyst Daniel Ives maintained an Outperform rating and $300 price target for Tesla shares.

The Tesla Thesis: Fears that Musk might be forced to sell more Tesla stock to fund the “disaster” Twitter deal have ultimately come true, Ives said in a note. The fear explains the massive selling pressure seen on the stock of late, he added.

See Also: Elon Musk's Tesla Stock Sale May Be Scary But Is Overhang Finally Lifted? Analysts React

Musk has asserted multiple times over the past year he is done selling Tesla stock, it is yet again losing credibility with investors and his loyalist in a “boy who cried wolf moment,” the analyst said.

Ives noted that the “Twitter circus” has been an “absolute debacle” from all angles since Musk completed the deal — from the 50% layoffs and then bringing back some fired employees to the verification rollout to users to his constant tweeting in this “political firestorm” backdrop to now selling more Tesla stock.

Musk should end this Twitter overhang on the Tesla story and shift his focus back to the EV maker, which needs his time more than ever due to the soft macro, production/delivery issues in China and increasing competition.

That said, Wedbush said its bullish view of Tesla is unchanged but called for no more selling of Tesla stock.

Price Action: Tesla shares traded 1.71% higher at $194.57, according to Benzinga Pro data.

Photo: Courtesy of Wikimedia Commons

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