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.