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Sacconaghi said that when Tesla's stock fell below the $ 300 level over the past 18 months, it was an "interesting short-term entry point" for investors.
He said the latest share decline reflected the potential risk of lawsuits, Musk's "increasingly uneven" behavior, increased competition from other automakers, and the increase in the number of executive departures. .
"However, it is not clear to us that this is a major problem for the stock," he said. "There has been little progressive news about Tesla's fundamentals … The company seems to be staying on track to meet its production targets for Model 3."
Despite its short-term optimism, Sacconaghi is still challenging Tesla's ability to maintain profitability for its Model 3 vehicle.
The analyst was one of Wall Street's main skeptics. Musk even described one of his questions as "bonehead" and "boring" on a winning call earlier this year.
"In the longer term, we remain neutral on Tesla, because we believe that it is unlikely that the stock will detach until investors get information on the profitability / normalized gross margin of the model 3. "said Sacconaghi. "We continue to see these two points as key interrogation points."
As a result, the analyst reiterated its market performance rating and price target of $ 325 for Tesla shares, representing a 23.5% increase over Friday's closing price.
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