Tesla’s (TSLA) stock is down at the time of writing as investors react to a mix of news, such as challenges in China and more interest from Republican buyers. Indeed, Rival EV makers like BYD (BYDDF) are making big advances in charging and self-driving technology, which is adding to the pressure on Tesla. At the same time, RBC Capital lowered its price target for Tesla from $440 to $320 per share due to expectations of lower revenue from its Full Self-Driving (FSD) system and robotaxi plans.
Interestingly, though, analysts at Oppenheimer pointed out that Tesla might attract more conservative buyers. Indeed, Tesla’s customer base is shifting, with more Republican buyers showing interest while Democrat support declines. By late 2024, more Tesla buyers identified as Republicans. However, this was not because of a big jump in Republican interest but rather because fewer Democrats were buying the brand.
Nevertheless, polls do show that 26% of Republican voters are now open to buying a Tesla, which is still up notably from the 13% in last August. But the question now becomes whether or not this interest from conservative voters will be able to replace the lost Democrat buyers. This is because Tesla’s current vehicle lineup and dealership locations may not be the best fit for them. The Oppenheimer analysts also warned about the potential risk of key executives leaving the company and losing talent as Tesla’s brand becomes more politically divisive.
Is Tesla a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 12 Buys, 13 Holds, and 12 Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $323.83 per share implies 42.7% upside potential.
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