Tesla Analyst Warns Situation Could Turn Uglier If Elon Musk Doesn't Change Course, Lists 10-Point Plan For Reversing Sentiment

Tesla Inc. TSLA shares have rebounded in the past two sessions after bottoming under the $109-level on Wednesday. A Tesla bull offered his take on what needs to be done if the recovery should sustain.

The Tesla Analyst: Wedbush's Daniel Ives has an Outperform rating and $175 piece target for the shares.

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The Tesla Thesis: If CEO Elon Musk doesn’t change direction, the situation at Tesla could turn uglier, Ives said in a recent note. The analyst listed 10 things Tesla investors wish for to turn sentiment around at the electric vehicle maker in 2023.

These include:

• 1. Musk naming a CEO for Twitter by the end of January.
• 2. The billionaire pausing stock sales and formally adopting a 10b5-1 plan just so to reassure investors there won’t be any more selling around the corner.
• 3. Issue a conservative 2023 delivery guidance, with 35% growth looking like a more realistic goal as opposed to the current outlook for 50% growth.
• 4. Musk turning his attention back to Tesla, as he is the “heart and lungs” of the company.
• 5. Announce that Cybertruck will begin deliveries by the end of 2023.
• 6. Change the composition of the board of directors, drawing in people with some more experience in tech and EV leadership.
• 7. Announce a major stock buyback program.
• 8. Increase transparency around financial metrics and margin structure.
• 9. Musk remaining apolitical on Twitter, as his political views are affecting Tesla’s brand image.
• 10. Lay out a strategic plan for Twitter as currently, Tesla investors fear that Twitter bleeding more money could necessitate Musk selling more stock.

Ives recommended that Twitter considers a three-year strategy once a new CEO is appointed, with the potential options including turning it into a Super App or like WeChat 2.0.

Price Action: Tesla closed Thursday’s session at $121.82, up 8.08%, according to Benzinga Pro data.