Former big bull on Tesla says the stock is ‘no longer investable’ due to Elon Musk’s behavior


Tesla shares are down 3.9 percent Tuesday.

Shah reduced his price target to $300 from $400 for Tesla’s stock, representing 5 percent upside from Monday’s close. His previous target was the sixth highest on Wall Street among 22 analysts, according to FactSet.

The analyst said Musk now tweets 15 times per day on average since May versus four tweets per day in the previous 18 months. He added Musk’s actions are hurting the company’s ability to retain executive talent.

“Mr. Musk’s behavior is well documented (taunting short sellers, NY Times interview, cave diver accusation, earnings call outburst, Joe Rogan podcast) and likely contributed to the onslaught of executive departures in recent months,” he said. “Notwithstanding improving fundamentals, we believe that Tesla is in need of better leadership (an about face) and are moving to the sidelines until we see what happens with management.”

Tesla did not immediately respond to a request for comment.