Tesla (TSLA) Should Come Under Pressure From SEC Escalation, Reit Sell At Citi
- Dow ends at record high, Nasdaq falls as tech slides
- Trump's Facebook (FB) Ban Upheld, Oversight Board Asks Company to Come Up With a 'Proportionate Response' Going Forward
- PayPal (PYPL) Tops Q1 EPS by 21c, Offers Q2 and FY Guidance
- Peloton (PTON) Plunges After Recalling All Treadmills, Analyst Says Will Negatively Impact Broader Tread Rollout
- T-Mobile (TMUS) Gains After Topping Q1 Consensus as 5G Story Accelerates, 'More to Come' Says Analyst
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
Citi analyst, Itay Michaeli, reiterated his Sell rating on shares of Tesla (NASDAQ: TSLA) after the SEC filed court documents asserting that Tesla’s CEO, Elon Musk, was in contempt of last year’s settlement agreement. Recent tweets from Elon Musk had to be corrected and weren’t pre-approved by Tesla as required by the settlement agreement. Tesla’s asserts that the tweets were thought to be mere repeats of prior public communication.
The analyst stated "We view this escalation as a negative and expect Tesla shares to come under pressure at least until some clarity is achieved. Though it’s difficult at this stage to predict an outcome (which can plausibly range from nothing material/additional fines to, at the extreme, a CEO removal), this escalation comes at a more delicate time for the company after recent management departures (including CFO), the ongoing Model 3 international expansion and looming debt maturities. Time is a factor too. Recall that last year Tesla and the SEC settled very quickly (over a weekend), which was a clear positive for Tesla at that time in helping mitigate the risk of a confidence spiral. In our view, the longer this new escalation drags out the greater the likelihood of negative consequences to Tesla’s fundamental position".
No change to the price target of $273.
Shares of Tesla closed at $290.42 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Securitas AB (SECUB:SS) (SCTBY) PT Raised to SEK118 at Morgan Stanley
- Tesla (TSLA) taps tiny startup Springpower's tech to build cheaper, cleaner batteries - Techcrunch
- Cocrystal Pharma, Inc. (COCP) Announces 26M Bought Deal Offering at $1.54/Sh
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesCiti, Tesla, Model 3
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!