Tesla shares fell nearly six per cent after a string of brokerages cut their price targets on the electric-vehicle maker’s stock, and they’re blaming Elon Musk’s Twitter distraction.
As a result, Tesla’s shares hit a more than two-year low.
Analysts say investors are worried that Musk may need to sell shares further to fund Twitter and sentiment around the acquisition of the social media firm could hurt the EV maker’s brand.
One major brokerage slashed its price target on the company’s shares by a third, saying investors fear damage to the Tesla brand.
The price target cuts come ahead of Tesla’s quarterly deliveries report expected in early January amid weakening demand in China.
Meanwhile, reports today that Musk is actively searching for a new chief executive officer for Twitter, following his poll about whether he should step down as Twitter CEO.
Musk and Twitter are yet to respond.
