Elon Musk’s rather colorful behaviour since President Trump took office in January has been described as a “containable brand issue” and unlikely to knock Tesla (TSLA) stock too far off track.
Raft of Negative Headlines
In a note to clients today four-star TipRanks-rated Wedbush analyst Dan Ives said despite a raft of negative headlines for chief executive Elon Musk the Tesla tale is still intact with upside catalysts remaining. Alongside day-job problems such as EV demand issues, vehicle recalls and Chinese competition, Musk’s high-profile role in the Oval Office has also put the Tesla stock under pressure. Indeed, year to date the stock has reversed around 16%. Musk has been heavily involved with Trump with his influence broadening into the DOGE (Department of Government Efficiency) initiative. He has also been vocal in his support of far-right political groups such as the AfD in Germany and has been critical of Ukrainian leader Volodymyr Zelensky.
Musk is No Cause for Concern
These factors have created a “visible perceived downside impact weighing on Tesla shares,” Ives said. An example of the negative reaction came from U.S. singer Sheryl Crow who was seen on Musk’s own X social media channel waving goodbye to her Tesla car alongside a caption stating “you are who you hang out with.” However, Tesla investors could, in homage to Crow’s finest work, keep having some fun holding the EV stock. “We view this as containable brand issues for Tesla for now that are not a major cause for concern,” Ives said. He added that a new vehicle launch, refreshed Model Y sales, and unsupervised FSD (full self-driving) in Austin, Texas, will be “key events and catalysts” for Tesla. He has a Buy rating and a $550 price target on the stock.
Is TSLA a Good Stock to Buy Now?
On TipRanks, TSLA has a Hold consensus based on 13 Buy, 12 Hold and 10 Sell ratings. Its highest price target is $550. TSLA stock’s consensus price target is $351.38 implying an 4.17% upside.
