Analysts Diverge on Tesla's Road Ahead Post-Feud
While year-to-date TSLA is down nearly 27%, some see a buying opportunity once the dust settles. Barclays' Dan Levy warned that last Thursday's drop may have been a classic sell the news reaction ahead of Tesla's robotaxi launch on June 12, but he argues TSLA hasn't fully priced in near-term headwinds and sticks with a Hold rating and $275 price target (6.8% downside).
Levy remains bullish on Tesla's total addressable market for autonomous ride-hailing but cautions that Musk must manage elevated expectations as the robotaxi narrative remains front and center. Oppenheimer's Colin Rusch also holds TSLA at Hold, noting that the Musk-Trump feud could shift the political calculus on EV incentives and autonomous driving regulations, potentially slowing Tesla's AV rollouts even as favorable solar provisions in the looming Senate Budget Bill might buoy its energy business.
By contrast, Morgan Stanley's Adam Jonas sees Tesla's core growth driversAI leadership, robotics, manufacturing efficiency and energy solutionsas largely apolitical, and he maintains a Buy rating with a $410 price target (38.9% upside).
Jonas believes the upcoming phase-out of federal EV tax credits won't dent Tesla materially and that long-term returns hinge more on execution than on headline risk.
Why It Matters: The Musk-Trump fallout has amplified existing EV market jitters and regulatory uncertainty, but Tesla's potential robotaxi launch and diversified growth engines could swing sentiment sharply.
This article first appeared on GuruFocus.
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