Tesla Executives Leaving Is a Surprise Blow, Says Wedbush

Tesla’s departures of Senior Vice President of Powertrain Drew Baglino and Vice President of Public Policy and Business Development Rohan Patel are causing concern for Wedbush, as noted in a new statement from Dan Ives. According to some, the $25,000 mass-market vehicle might be named Model 2, although it has not been officially confirmed by Tesla. Ives believes that Baglino’s departure is a significant loss for Tesla, especially in relation to the Powertrain and Energy initiatives and the Model 2 initiative. This news, combined with the company’s cost-cutting strategy and disappointing Q1 deliveries, has put pressure on the stock.

The upcoming Earnings Call is crucial, and investors are hoping for clarity on Tesla’s cost-cutting rationale, future strategy, product roadmap, and overall vision from Elon Musk. Wedbush views the departures of the two executives as a critical moment for Tesla, indicating that the company needs to navigate through its challenges to avoid potentially darker days ahead. Despite reiterating a $300 price target and an ‘Outperform’ rating, Ives and Wedbush express uncertainty about Tesla’s future. They emphasize the importance of Tesla providing a clear roadmap and strategic vision for the Model 2 to avoid further setbacks.

At 3:06 p.m. EDT, Tesla’s stock is down 5.12 percent.

Leave a Reply

Your email address will not be published. Required fields are marked *