Events yesterday raise degree of uncertainty for Tesla, says TD Cowen

TD Cowen says Thursday’s events between Elon Musk and President Trump “clearly raise the degree of near-term uncertainty” for Tesla (TSLA), including with respect to how political developments might impact the company’s sales. There are more questions than answers following Thursday’s developments, and it is still too early to determine any lasting impacts, the analyst tells investors in a research note. TD believes the near-term focus will likely be on Tesla’s execution of upcoming deliverables plus any political-related vehicle demand shifts. The firm estimates 35% of Tesla’s U.S. sales are in Republican counties, of which it would characterize 12% as being in “Deep Red.” Of Tesla’s 65% Democratic exposure, TD would characterize 36% as being in “Deep Blue.” The original political divide around Tesla’s brand began in Q1, the firm contends. TD has a Buy rating on Tesla with a $330 price target