Cantor Fitzgerald Reaffirms Neutral Rating for Tesla, While Tether Investigation Raises Concerns

Cantor Fitzgerald has reaffirmed its neutral rating for Tesla (NASDAQ:TSLA), according to recent analyst updates. This decision comes as several other equities research analysts have also commented on Tesla’s stock performance. For instance, Sanford C. Bernstein reissued an “underperform” rating and set a $120.00 price target for the company.

In other news, Cantor Fitzgerald is also facing scrutiny due to its involvement with the cryptocurrency firm Tether. The US government is investigating Tether for possible breaches of anti-money laundering (AML) and sanctions laws. The investigation, led by prosecutors at the Manhattan US attorney’s office, is examining whether Tether’s token has been used to finance drug trafficking, terrorism, and other illegal activities. The Treasury Department is also considering sanctions on Tether due to its cryptocurrency’s use by US-sanctioned individuals and groups, including Hamas and Russian arms dealers.

Tether has previously faced regulatory issues, including a $61 million settlement over asset misrepresentation. The current investigation could have significant implications for Cantor Fitzgerald, as it manages much of Tether’s $80 billion reserves. Tether has denied any awareness of a broad investigation and claims to work actively with US and international law enforcement to combat illicit activity.