Four-star Wedbush analyst Dan Ives sparked speculation on Friday that Tesla (TSLA) CEO Elon Musk might acquire social media company TikTok. Ives believes that ByteDance, TikTok’s Chinese parent company, is considering Musk as a potential buyer, given his strong relationship with Beijing. This speculation sent EV maker Tesla’s stock price soaring almost 6% at the time of writing. Ives thinks that Musk’s involvement could be a game-changer for TikTok, which faces a nationwide ban in the U.S. unless it finds an American buyer.
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In fact, the U.S. Supreme Court rejected TikTok’s appeal to overturn the federal law banning the platform due to national security concerns, with the ban set to take effect on January 19. Ives noted that Musk’s potential involvement in the deal could alleviate concerns about data security and ownership.
Ives predicts that Musk will play a significant role in finding a solution for TikTok and might even lead a consortium to buy the platform, which is valued between $40 billion and $50 billion. Musk’s close ties with Trump, who has vowed to “save” TikTok, have contributed to Tesla’s 74% stock surge since Trump’s election win in November. Ives’ prediction also suggests that Musk’s acquisition of TikTok could be a strategic move to expand his business empire and tap into the social media market.
Is Tesla Stock a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 12 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. After a 107% rally in its share price over the past year, the average Tesla price target of $329.63 per share implies 24.7% downside risk.
