Tesla price target reduced by Nomura while the behavior of Elon Musk is cited

Put the seal, Elon.

Nomura Instinet downgraded Tesla Inc. (TSLA) on Tuesday, Sept. 11, and analysts reduced the price target to $ 300 from $ 400. Tesla can "no longer invest" in their eyes, Nomura said.

Tesla was at $ 279 in pre-market trading, down 2.3%.

Nomura started the note saying that he was "one of the most optimistic about Tesla shares since the cover began last October," but that there is a big problem with the automaker.

"The problem, though, is the erratic behavior of CEO Elon Musk." In the second quarter, the change apparently reversed, and the best way to indicate this is the number of tweets a day, which went from four per day to 15 18 months. "

Nomura cited Musk's recent behavior, "making fun of the short sellers, the New York Times Interview, the caveman's plea, the revenue explosion, the Joe Rogan podcast."

Another problem for analysts concerns the departure of leaders in the last two months. "In particular, the resignation of Accountant David Morton after only a month of employment has hit him near.With our experience in technology, we recognize Morton as a respected leader …"

Analysts still have high hopes for Tesla herself. "We continue to believe that Tesla could be much bigger than today," analysts wrote. The memo even compared Tesla to Apple Inc. (AAPL) for brand recognition.

"With the launch of Model 3, we found that consumers wanted to give up convincing alternatives despite long wait times and a higher price," says the note. The problem with brand recognition is that Musk's behavior is to "tarnish the Tesla brand, which, in terms of value, is the most important."

Analysts said that "customers are fickle and we suspect [they] might be afraid to buy a Tesla if they think the company is not in the long run. "

Nomura offers a last point on Tesla. "Despite improved fundamentals, we believe that Tesla needs better leadership and a change of direction until we see what's going on with management," said analysts.

In the past year, Tesla has dropped about 21%.

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