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Tesla (TSLA) shares are in the spotlight on Friday following news the electric vehicle maker has fired Omead Afshar – its vice president of manufacturing and operations.
Afshar’s ouster comes following months of sales declines that made TSLA lose share in key global markets. According to the latest ACEA data, the automaker’s European sales were down nearly 28% in May.
Tesla stock is trading more than 11% below its recent high.
Afshar’s Departure May Actually Prove a Positive for Tesla Stock
While the initial response has been negative, Afshar’s departure could prove positive for Tesla in the long run given it signals a proactive leadership shake-up aimed at resetting operations amid recent underperformance.
With European sales slipping and global competition intensifying, removing a top manufacturing executive might signal a strategic pivot to reinvigorate execution and efficiency.
TSLA shares could benefit from the announcement if markets read it as the company positioning itself for leaner, more responsive operations ahead of new product rollouts and autonomous vehicle plans.
In short, the EV stock’s dip Thursday on the news might reflect near-term volatility, not long-term weakness.
Benchmark Analyst Raises His Price Target on TSLA Shares
Despite the management shake-up and continued slump in European sales, Benchmark analyst Mickey Legg says nothing currently matters more for TSLA than its recent successful launch of robotaxi services in Austin.
In his latest research note, Legg argued the company’s self-driving initiative set it up for future growth as he raised his price target on the EV stock to $475, indicating potential upside of another 50% from current levels.
Texas is set to implement new autonomous vehicle regulations in September, which the analyst believes will pave the way for the automaker to expand its robotaxi services to more cities, leading potentially to further upside in Tesla stock.
Wall Street’s Consensus Price Target Suggests Downside in Tesla
Investors should note, however, that other Wall Street analysts remain cautious on TSLA stock despite the company’s blockbuster launch of robotaxi operations on June 22.
The consensus rating on Tesla shares currently sits at “Hold” only with the mean target of about $296 indicating potential downside of nearly 10% from here.
