Wall Street analysts react to the SEC's motion filed Monday evening directing a federal judge to hold Tesla CEO Elon Musk in contempt of court.
"Should the SEC again seek to remove Mr. Musk, we estimate TSLA shares could approach but perhaps not breach 52-week lows," analysts led by Ryan Brinkman wrote to clients Tuesday.
"The SEC is requesting the Court find Mr. Musk in contempt, but did not on Monday request any specific remedy. In particular, it has not requested to set aside the earlier settlement which led to the withdrawal of securities fraud charges and its request Mr. Musk be barred from serving as an officer of any public company, including Tesla."
That's what the analysts view as a"worst case scenario," the likelihood of which is difficult to judge at this point. If the SEC were to seek Musk's removal, the analysts wrote, shares may approach — though not retest — the mid-$200 levels seen in the aftermath of the suit over Musk's infamous"funding secured" tweet.
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