Tesla, Inc. TSLA CEO Elon Musk is considered a polarizing figure, often drawing criticism from detractors. However, even a Tesla bear, Gordon Johnson of GLJ Research, known for his Sell rating and modest price target for the electric vehicle manufacturer’s stock, acknowledged Musk’s pivotal role in spearheading EV adoption.
What Happened? Despite differing views, Johnson conceded that Musk took a “big risk delving into EVs when pretty much ALL OF the big legacy automakers said it wasn’t possible.” He highlighted that traditional internal combustion engine manufacturers initially scoffed at Tesla’s ambitions, choosing to ridicule the idea.
“While I don’t agree with many of his tactics used to survive over the years, what he’s accomplished is commendable,” remarked Johnson during an appearance on CNBC Last Call.
The analyst attributed the Biden administration’s apparent snubbing of Tesla and Musk to the company’s “non-union shop” status. He also pointed out Musk’s tendency to skirt the law and defy regulations, and then show off on Twitter.
“He [Musk] has such a large reach, and so many people are focused on him,” Johnson explained. “So, there’s a negative feedback loop, and it has a negative corrosive effect on society.”
See Also: Best Electric Vehicle Stocks
Why It’s Important: Johnson’s assessment of Musk might have validity, as evidenced by Musk’s recent controversial remarks at the New York Times Deal Summit. In response to many advertisers pulling out of X, a social media platform owned by Musk, due to his endorsement of anti-Semitic comments, Musk used explicit language.
Johnson was recently at the receiving end of Musk‘s temper as the billionaire took a swipe at the former's track record of predictions. After the analyst said Tesla's sales are imploding, Musk indirectly shot back at him, quipping, "There is value in someone being a reliable contra-indicator."
The GLJ Research analyst has also raised concerns about Tesla sales allegedly collapsing, particularly with weakening demand in China.
Musk has often expressed concerns about Tesla facing bankruptcy during the mass-market launch of its vehicle, the Model 3.
Despite these worries, Tesla is set to deliver 1.8 million units this year, making it the highest among pure-play battery EV makers. Furthermore, it has become the world’s most valued automaker, surpassing industry giants like the “Big Three” of Detroit and Toyota.
Tesla closed Wednesday’s session down 1.05% at $244.14, according to Benzinga Pro data.
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