Tesla Stock: Upcoming Catalysts Trump Negative Sentiment, Says Wedbush

Tesla (NASDAQ:TSLA) has always been a controversial name that has elicited a variety of opinions. However, in recent times, the divide between Tesla believers and naysayers has widened considerably.

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For anyone following the general news flow, that is hardly a surprising turn of events. While the stock got a huge lift in the wake of the November election results as Musk’s bet on Trump paid off big time, the Tesla CEO’s growing political activity and highly controversial acts as the head of DOGE appear to be a real turn off for many consumers with Tesla sales plummeting in many regions across the globe.

So, the Tesla story appears to be souring. Or not, at least according to Wedbush analyst Daniel Ives, who does not think recent developments are a big deal, believing they are “containable brand issues for Tesla for now that are not a major cause for concern.” That remains to be seen.

On a less contentious matter, Ives simply thinks Tesla investors are worried Musk is losing focus. There is a concern he is devoting even more time than anticipated to DOGE, which could distract him from Tesla at a critical time for the company. With the competition in autonomous technology and robotics heating up in both the U.S. and China, many investors worry that Musk appearing to spend “100% of his time” on DOGE creates a “negative perception” regarding his commitment to Tesla. “The bears will now focus on this DOGE issue, isolated protests, brand worries as their latest narrative, but the reality is this does not change the future of Tesla,” the analyst confidently said.

That’s because the fully-fledged TSLA bull thinks upcoming events will provide the necessary lift. Tesla is preparing for the launch of a new mass-market vehicle in the first half of 2025 and that could turn out to be a “much needed growth catalyst for global deliveries.” Tesla is also making inroads in autonomy and Optimus across its global production network while the unsupervised FSD rollout in Austin is scheduled for June. There’s also a near-term catalyst to consider. “We believe the Model Y Juniper release over the next week officially launching in the US and China will be key to unlocking some demand in these key regions,” Ives further said.

With all this to play out, Ives maintained an Outperform (i.e., Buy) rating on the shares, backed by a Street-high $550 price target. There’s potential upside of 66.5% from current levels. (To watch Ives’ track record,click here)

12 other analysts join Ives in the bull camp, yet with an additional 12 Holds and 10 Sells, the consensus view is that this stock is a Hold. The average target stands at $351.38, suggesting shares will gain 6% in the months ahead. (See Tesla stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.