(Bloomberg) -- The biggest bullish sell-side analyst on Tesla is unperturbed by the steady stream of executive departures at Tesla.
New Street Research analyst Pierre Ferragu, who initiated coverage on Tesla earlier this month with an outperform rating and a price target of $530, said the string of recent exits at Tesla don’t pose a new risk. “Tesla has run like that for years and has been fairly successful so far. It might be an unpleasant dysfunctional way to operate, but it is not a new risk on the radar screen,” he said during a live question and answer session with Bloomberg clients.
Departures related to Tesla’s Autopilot don’t bother Ferragu at all. “Tesla is not the best place for developers keen on ADAS (advanced driver-assistance systems).” Exits from finance or engineering can be red flags, although he chalks them up as “likely false positives.”
“If you are scarce talent, it makes sense to go to Tesla. Once at Tesla all the Valley will want you,” Ferragu added. “If you get bored about sleeping in a bag on the factory floor, you have other options.”
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