The President and CEO of wealth management firm Strategic Wealth Partners warned in a recent interview that Tesla stock was the “absolute epitome of instability.”
Tesla and its CEO Elon Musk have faced a rough few days, with Goldman Sachs predicting a 30 percent drop in Tesla’s stock price over the next six months, suppliers growing skeptical of Tesla’s production goals,Tesla’s bond prices hitting a record low following CEO Elon Musk’s renewed attack on the British cave rescuer who saved the lives of a Thai soccer team, and Musk drinking whiskey and smoking weed on the Joe Rogan Experience podcast.
Mark Tepper, the president and CEO of wealth management firm Strategic Wealth Partners stated in a recent interview that Tesla’s stock is extremely volatile: “I wouldn’t touch this thing with a 10-foot pole. Right now this company is the absolute epitome of instability. We like buying companies with a good growth story, strong management team, that are reasonably priced and Tesla doesn’t get a check in any of those boxes,” Tepper said on CNBC’s “Trading Nation” on Friday.
Discussing the recent departure of Tesla’s CAO, Dave Morton, Tepper added: “Elon is absolutely off his rocker whether it’s tweets or whatever he’s recently doing. Maybe the pressure is getting to him, but his behavior just seems odd. The management team is dropping like flies.” Discussing Tesla’s stock Tepper continued: “We’re avoiding this thing like the plague.”
Craig Johnson, the chief market technician at Piper Jaffray, also discussed Tesla’s stock stating: “We’re approaching really important technical support at $242 and if we don’t hold that $242 support level, there’s not support until about $178 so a lot of pressure here in the stock. Breaking through that level, the shorts are going to jump all over this stock and push it meaningfully lower so I’m not touching this stock at this point in time,” added Johnson. “This stock has clearly not found its footing by any stretch.”