Tesla shares seen rising regardless ‘fever pitch’ of bad news: experts

Tesla Inc logo

Negative reports about Tesla Inc have hit “fever pitch”, however the electric automaker’s stock price is likely to rise as output of its Model 3 sedan improves, according to an analyst research report.

Following the publication of Baird Equity Research analyst Ben Kallo’s note on Wednesday, Tesla CEO Elon Musk chimed in with a number of tweets critical of journalists’ coverage of his company.

Musk stated on Twitter that he would create a website where readers could score the realiability of news stories.

“Problem is journos are under constant pressure to get max clicks & earn advertising dollars or get fired. Tricky situation, as Tesla doesn’t advertise, but fossil fuel companies & gas/diesel car companies are among world’s biggest advertisers,” Musk wrote on Twitter.

Tesla’s stock increased 1.48 percent to end at $279.07.

Kallo stated news reports about factory accidents, employee turnover, and production pauses have collaborated to investor pessimism but sentiment would likely recover as the company repairs factory bottlenecks and boosts output of its Model 3.

“Sentiment is as negative as we have experienced around Tesla, and we want to lean into the fever pitch,” wrote Kallo, one of nine experts who recommend purchasing Tesla’s stock, according to Thomson Reuters data.

He called the rise of negative Tesla headlines during the last month “increasingly immaterial.”

Another eight experts recommend selling Tesla, while nine have neutral ratings.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.