Wedbush analyst Daniel Ives has lowered his Tesla (TSLA) price target from $1,400 to $1,000 over concerns on how the ongoing problems at Giga Shanghai might impact the automaker’s Q2 results.
In a note to investors on Thursday Ives called the ongoing lockdowns in Shanghai as an “epic disaster,” which have resulted in Tesla being forced to shut down their factory for 22 days in April and May.
Even though the factory is up and running again, it is still operating under a closed loop system where employees live and work at the factory. Production has also been slow to ramp up to pre-shutdown levels as suppliers struggle to keep their factories open.
Ives expects this to result in “modest delivery softness this quarter with a slower growth trajectory in the key China region into the [second half of the year].”
The analyst said that while Giga Shanghai is experiencing some issues, Giga Texas and Giga Berlin will be key growth drivers over the coming months and years.
Twitter also made it into Ives’ update with the analyst calling Musk’s attempts to buyout the social media company a “circus show” and a “black eye” for Tesla’s stock. Ives adds that Musk should turn his attention away and refocus on Tesla as the automaker goes through “the worst supply chain crisis seen in modern history.”