Renowned Analyst Is More Bullish on Tesla (TSLA) Stock, But It Will Likely Be Ejected From Momentum ETF

Well-known tech analyst Dan Ives of Wedbush Securities recently raised his price target on TSLA stock, CNBC reported.

But Joe Terranova, the Senior Managing Director and Chief Market Strategist for Virtus Investment Partners, indicated that there is a very high chance of Elon Musk's firm being ejected soon from his Virtus Terranova U.S. Quality Momentum ETF (JOET).

Ives' Upbeat Comments on TSLA Stock

In the wake of Elon Musk's recent commitment to focus more on TSLA soon, Ives raised his price target on the shares to $350 from $315. Some of the damage that Musk has done to Tesla's brand in Europe and the U.S. will never ease, Ives acknowledged.

But he added that "Musk recommitting as CEO is basically the best news that Tesla investors could have heard" from the CEO.

Terranova Strongly Suggests That TSLA Will Be Booted From His ETF

In order for Tesla to remain in JOET after the ETF is rebalanced, "there would have to be a dramatic bounce" by TSLA stock in the next few trading days, Terranova said.  He noted that the ETF will be rebaalanced on April 30.

Terranova added that his ETF "prioritizes revenue growth" while Tesla's "revenue growth is flatlining." Finally, the strategist stated that Elon Musk's firm is "fundamentally challenged."

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Disclosure: None. This article is originally published at Insider Monkey.