Analyst Dan Ives blasts Tesla, calls earnings a 'train wreck' and cuts price target

Tesla CEO Elon Musk failed to address investors' concerns about price cuts in “another train wreck of a conference call” this week, Wedbush analyst Dan Ives told clients in a research note Thursday. Ives slashed his 12-month stock price target for Tesla by 10% to $315, which still implies about 52% upside from Wednesday's close. The analyst told clients that Tesla's botched earnings call has shaken Wedbush's near-term confidence in the company's story. “We were dead wrong expecting Musk and team to step up like adults in the room on the call and give a strategic and financial overview of the ongoing price cuts, margin structure, and fluctuating demand,” Ives told clients in his note. “Instead we got a high level Tesla long term view with another train wreck conference call,” the analyst said. Tesla reported disappointing fourth-quarter results Wednesday with revenue growing just 3% due in part to the automaker's steep price cuts as demand for electric vehicles softens. Tesla also warned that volume growth “may be notably lower” in 2024. Ives described Tesla's price cuts as a “Category 4 hurricane” in the near term. The lack of communication and guidance from Musk “is a bitter pill to swallow for the bulls,” the analyst wrote. Nevertheless, Ives said Tesla's long-term story remains intact and Wedbush truly believes that the mass-market adoption of electric vehicles is around the corner. Ives has maintained his outperform rating for Tesla despite cutting the stock price target. “Our near-term confidence in the story is shaken, but we remain firm on a long term bull thesis around Tesla and the broader AI story set to take hold,” Ives wrote. “This is a pivotal period for Musk to get Tesla through that will help shape (or haunt) its EV future.”