Tesla (TSLA) stock may be down by a third in 2025 on faltering sales and concerns about its CEO Elon Musk taking his eye off the ball, but the pullback is creating opportunities for investors, according to resolute bulls on Wall Street.
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TD Cowen upgraded Tesla to Buy from Hold with a price target of $388, up from $180. The firm came out “tactically bullish” given the recent share price pullback coming “ahead of several potentially consequential catalysts this year.” Analyst Jeff Osborne says Tesla’s “potentially game-changing level catalysts” across electric vehicles, autonomous vehicles and robotics are enough to support the stock this year.
It comes as Tesla’s EV sales in Europe crumble amid Musk’s cozying up to President Donald Trump and increasingly embittered relations between the White House and European nations over issues such as Ukraine and trade. Meanwhile, Musk’s support for hard-right parties in Europe, such as Germany’s AfD, has irked many. Tesla’s sales in the first two months of the year are down 71% in Germany and 44% in France.
Musk has also led efforts at the new Department of Government Efficiency to reduce costs, leading to a sharp rise in layoffs last month in the U.S. The Wall Street Journal ran with a story yesterday on how Musk’s politics were eroding the Tesla brand’s appeal among core buyers of EVs.
TSLA Bulls Out in Force
Despite or perhaps because of some of these concerns some notable Tesla bulls have come out with upbeat notes in recent days.
In a note this week, Tesla cheerleader Dan Ives at Wedbush addressed DOGE and the political controversies, saying these have minimal impact on Tesla’s sales. He estimates that less than 5% of Tesla’s global sales are at risk due to these factors, despite plenty of negative sentiment.
In fact, Ives even added Tesla to the “Best Ideas List” at Wedbush while reiterating Street-high $550 price target.
Mmeanwhile, Morgan Stanley’s Adam Jonas praised Tesla’s potential in the evolving landscape of AI and robotics to offset the company’s struggles in the EV market as he reinstated the stock as the “Top Pick” in U.S. autos.
Jonas, who upped his price target to $430, said Tesla’s recent travails were “emblematic of a company in the transition from an automotive ‘pure play’ to a highly diversified play on AI and robotics.”
Is Tesla a Good Stock to Buy?
Overall, Wall Street analysts continue to hold a neutral view on Tesla stock. According to TipRanks, TSLA stock has a Hold consensus rating, with 14 Buys, 11 Holds, and 10 Sells assigned in the last three months. The average price target for Tesla shares is $351.48, suggesting a potential upside of about 33% from the current level.
