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10 things Musk needs to do to help Tesla stock recover in 2023 - Wedbush

Published 12/30/2022, 06:41 AM
Updated 12/30/2022, 06:47 AM
© Reuters.  10 things Musk needs to do to help Tesla (TSLA) stock recover in 2023 - Wedbush's Ives

By Senad Karaahmetovic

Based on yesterday’s close of $121.82, Tesla (NASDAQ:TSLA) stock price is down over 65% year-to-date (YTD). This week’s low of $108.24, which is also the 2022 low for Tesla stock, marks the lowest level seen since August 2020.

Several sell-side analysts jumped in this week to defend Tesla and highlight a buying opportunity in stock after a massive selloff since August.

Along these lines, Wedbush analysts, who harshly criticized CEO Elon Musk lately, shared the top 10 things that Musk needs to do next year to help improve the sentiment surrounding Tesla stock.

1. Name a CEO of Twitter by the end of January;

2. Stop selling stock and no more boy that cried wolf or Pinocchio situation;

3. Lay out conservative 2023 delivery and targets given the darker macro;

4. Focus attention back on Tesla, not Twitter;

5. Announce Cybertruck deliveries will hit the road by the end of 2023;

6. Board of Directors changes with some more experience around tech and EV leadership;

7. Buybacks, Buybacks, Buybacks. Announcing a major stock buyback program is important/key for the Street's confidence;

8. More financial metrics and transparency around the margin structure at Tesla;

9. The more political on Twitter that Musk becomes is a bad thing for selling EV cars to the masses; and

10. Lay out the strategic plan for Twitter.

Wedbush recently cut the price target on Tesla to $175 from the prior $250 per share after removing the stock from its ‘Best Idea’ list.

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“We remain long term bullish and Outperform on Tesla although Musk MUST start to change direction here otherwise this situation could get even uglier,” they wrote in a note to clients.

Latest comments

Mask can not do anything... TSLA is a bubble, and bubbles tend to burst
Ditch Twitter.
Redesign cybertruck so people won't be embarrassed to be seen in it.
Damn true !
Fed is hesitant or better said procrastinates rate hike! Solid ground for buy, buy buy stocks...
Not announce cybertruck... but start delivering Cybertruck in 2023.
funny to see that almost every suggestion regards him and Twitter. Maybe something related to this media platform not being woke anymore? incredible how this agenda has strong shade people behind it
Strong shade people?
  Maybe code for brown or black people
Only 4 out the 10 suggestions refers to Twitter.  40% =/= "almost every suggestion"
Hmmm...I wouldn't presume that Musk needs free advice.
I wouldn't presume Elon is infallible because I'm not one of his cult members.
Buybacks are for when it is a bad idea to invest im your own design or production. It is just a very expensive PR move. No.
11: redesign the cyber truck to look like a truck instead of an eye searing UFO
My next car will be a Tesla.
instead of buybacks continue to double production. semis and cyber trucks. with 1/7 people who buy purchasing FSD for 15k and solar and megapacks sold out as far as the eye can see why spend money reducing share count when every dollar that gets invested in the biz has a guaranteed ROI of 30+%?
11.  Stellar sales and earnings
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