Tesla (NASDAQ:TSLA) bulls have been through the wringer over the past few months. Hopes of a smooth ride in 2025 were quickly dashed by a mix of political turbulence, slowing demand, and growing skepticism around the company’s future direction.
CEO Elon Musk has firmly placed himself on the right-hand side of the political spectrum, alienating large swaths of society in key markets around the globe. EV sales, which had already been sinking before Musk’s “side hustle” in the Trump administration, have taken a further hit in the first few months of the year.
There was more bad news for the firm. Last week, a safety issue forced Tesla to issue yet another recall for its Cybertrucks — the 8th such notice over the past 15 months.
Still, it’s not all red on the screen. Despite a 30% drop in Tesla’s stock this year, shares have begun to regain some ground, climbing 28% over the past 5 trading sessions. A company-wide “all-hands” meeting led by Musk appears to have steadied internal morale, and markets are breathing a little easier as Trump’s proposed tariffs seem less harsh than previously feared.
Still, the anger at Tesla shows no signs of abating, making investments in the company a bit of a leap of faith in Musk’s ability to weather the current storm.
One top investor, known by the pseudonym On the Pulse, urges investors to put these negative emotions to the side.
“Investors should not make the mistake and count Tesla out just because it is unpopular and out-of-favor with investors,” explains the 5-star investor, who’s among the top 3% of TipRanks’ stock pros.
The investor points to Tesla’s unassailable leadership in the U.S. EV market, a position that is not really under threat from any competition. On the Pulse explains that Tesla’s scale is simply unmatched by any other company.
In addition, TSLA has the strong potential for growth in China. For instance, the company announced in March that it had received 200,000 orders for the revamped Model Y in China.
“Tesla has a 14% market share, on a global basis, and still has a chance to claw back its number-one position from BYD Auto once the refreshed Model Y becomes available later in 2025,” adds the investor.
In other words, the short-term headwinds do not mask the overall case for TSLA, asserts On the Pulse. Therefore, the investor argues, bulls who can push these negative sentiments to the side could be rewarded.
“I think that the electric-vehicle company is underrated and unfairly dismissed at the present time, mostly for emotional reasons,” concludes On the Pulse, who rates TSLA shares a Buy. (To watch On the Pulse’s track record, click here)
As for Wall Street, the jury’s still out. Tesla holds 14 Buy ratings alongside 11 Hold and 11 Sell calls, resulting in a consensus Hold (i.e., Neutral) rating. The average 12-month price target of $335.32 implies potential upside of 16% from current levels. (See TSLA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.