Tesla (TSLA) investors need clarity from Elon Musk on the company’s cost-cutting rationale, strategy, product roadmap and vision amidst weak global demand, Wedbush said in a note Monday.
The investment firm added that without clear communication, investors may lose confidence and choose to sell their shares given the demand headwinds in 2024. There were reports earlier on Monday that the company has decided to reduce headcount globally by more than 10%.
Musk must outline Tesla’s growth strategy, particularly in China, to reverse this negative demand trend, according to the note. “This is a crucial few months ahead for Musk and Tesla to give the [Wall Street] its blueprint for growth into 2025,” the firm said.
Wedbush reiterated its outperform rating on Tesla with a price target of $300.