Tesla co-founder and CEO Elon Musk must recognize he can’t do it all and agree to bring in a strong No. 2 to run day-to-day operations at the electric automaker, leading analysts told CNBC on Tuesday.
“We think he’s going through a founder’s dilemma. He’s clearly stretched too thin,” Consumer Edge Research analyst James Albertine said on “Squawk Box.” “I think this is Elon going through personal issues, having his own struggles with the bears, very publicly.”
Musk had been acting acting erratically for months even before his take-private tweet two weeks ago, which raised concerns among investors and regulators in Washington.
In May, Musk rudely cut off analysts on Tesla’s first-quarter earnings call, something he apologized for on the second-quarter call earlier this month. He was also launching tweetstorm after tweetstorm all summer long as he was dealing with major production problems for the automaker’s new, less expensive sedan, the Model 3.
The board needs to bring in a chief operating officer or co-CEO to take some of the pressures off of Musk and allow him to concentrate on being a “brilliant leader as a visionary,” contended Albertine, who on Tuesday downgraded Tesla stock to equal weight and reduced his 12-month price target to $311 per share from $385.
Shares of Tesla broke a four-session, 14 percent losing streak on Monday, and the stock was logging a strong advance in early Tuesday trading.
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