New York — Nomura Instinet analyst Romit Shah downgraded Tesla on Tuesday morning to neutral from buy in a note titled, No Longer Investable. The note to clients starts by pointing out that previously he was one of the biggest bulls on Wall Street since initiating coverage last October. Shah slashed his price target on the company to $300 from $400 citing the "erratic behaviour of CEO Elon Musk." Among Shah’s concerns: the increasing number of Musk tweets a day, his cave diver accusations, his outbursts on an earnings call, his taunts of short-sellers and his appearance on Joe Rogan’s podcast. Shah continues to believe that Tesla can out-innovate the competition and that the company may eventually be much bigger than it is today, but says it’s better to remain on the sidelines until the company has better leadership. Tesla shares have lost more than 25% of their value since early August in the immediate wake of Musk’s "funding secured" tweet. The shares fell 2% in pre-market trading...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now