Tesla Stock Faces Demand, Political, Tariff Pressure: Why Analysts Focus On 'Multiple Generational Growth Drivers'

Tesla Inc TSLA analysts are cautious on the short-term outlook of the electric vehicle company after it missed revenue and earnings per share estimates in the first quarter.

The Tesla Analysts:

• Truist Securities analyst William Stein maintained a Hold rating on Tesla with a $280 price target.
• Needham analyst Chris Pierce reiterated a Hold rating with no price target.
• Goldman Sachs analyst Mark Delaney maintained a Neutral rating and lowered the price target from $260 to $235.
• Stifel analyst Stephen Gengaro reiterated a Buy rating with a $455 price target.
• Cantor Fitzgerald analyst Andres Sheppard reiterated an Overweight rating and lowered the price target from $425 to $355.
• Piper Sandler analyst Alexander Potter reiterated an Overweight rating with a $400 price target.
• Benchmark analyst Mickey Legg reiterated a Buy rating with a $350 price target.
• Canaccord Genuity analyst George Gianarikas reiterated a Buy rating and lowered the price target from $404 to $303.

Read Also: Benzinga Readers’ Predictions For Tesla Q1 Earnings Results, Musk’s Announcements

Truist Securities on TSLA: Weak delivery data and 2025 growth being withdrawn were negatives from Tesla's first quarter, Stein said in a new investor note.

"Despite weak results, TSLA's reaffirming operating goals is a positive," Stein said.

Positives from Tesla's earnings call highlighted by the analyst were CEO Elon Musk shifting time from the Department of Government Efficiency to Tesla in May, tariffs hurting other automakers more than Tesla, a lower-cost model on track for the first half of 2025 and the Robotaxi service starting in Austin in June.

The analyst said the first-quarter results saw management commentary on tariffs and political sentiment that could impact demand and costs, and saw growth guidance for 2025 withdrawn.

"We remind investors that TSLA has historically delivered stunning technical achievements, but often delivered later than initially promised. We maintain an open mind."

Needham on TSLA: A demand rebound for Tesla could be difficult, Pierce writes in a new investor note.

"We're sensitive to short-term political headwinds hurting demand, but we've yet to hear a compelling reason why TSLA demand will bounce back quickly," Pierce said.

The analyst said Tesla's bullish tone on FSD, robotaxis and Optimus bot continue to be an attempt to point to higher margin segments.

"We continue to see these call options as more priced in that not."

Goldman Sachs on TSLA: The first quarter was a mixed report for Tesla, Delaney said in a new investor note.

The analyst said new product launches, tariffs, margins, FSD and robotaxis are likely to be the key debates following the quarterly results and conference call.

"We still see downside risk to consensus estimates over the intermediate term given tariff costs and end demand considerations," Delaney said.

The analyst said the new lower-cost vehicles could also be less unique than expected, given new company comments.

Stifel on TSLA: A weak first quarter was "not a big surprise," Gengaro said in a new investor note.

"We believe 1Q25 results/commentary are modestly positive for TSLA," Gengaro said.

The analyst said positives are the lower-priced vehicles remaining on track, confidence in FSD rollout, progress made on robotaxis and Musk spending more time at Tesla in the coming months.

"We reiterate our belief that TSLA remains very well positioned, and FSD and Robotaxi will be critical value drivers."

Cantor Fitzgerald on TSLA: Sheppard remains bullish on Tesla with the launch of Robotaxi in Texas in June and the lower-priced vehicles coming in the first half of 2025 being reiterated.

"We are also encouraged by Musk's comments that his time at DOGE will be significantly reduced starting in May, and that as a result, he plans to allocate more time to Tesla," Sheppard said.

The analyst said additional FSD rollouts like China and Europe, high volume production of Optimus and the introduction of the Tesla Semi Truck are key catalysts to watch.

"We continue to see future revenue upside from FSD, Robotaxi, Energy Storage & Deployment and Optimus Bots, to be fundamental to TSLA's thesis over the long term."

The analyst said there is increasing concern in the near term given tariffs and macroeconomic uncertainties.

Piper Sandler on TSLA: First quarter financials were "weak," according to Potter.

"No slam dunks in Q1, but management said enough to keep the dream alive," Potter said.

The analyst said the most important takeaway from the first-quarter results is the timeline for robotaxis and lower-priced vehicles remaining in place.

"With <2 months until the end of June, investors can look forward to some interesting catalysts in the weeks ahead."

Benchmark on TSLA: The market outlook on Tesla could be clouded given the concern of tariffs on the industry, Legg said in a new investor note.

The analyst said Robotaxis, Optimus and new products provide long-term upside.

"We believe investors should look beyond the short-term road bumps and focus on the breadth of upcoming opportunities," Legg said.

Legg said concerns on the political backlash against Tesla could be overblown and Musk allocating less time with DOGE could help the politicization of the brand to subside.

Canaccord Genuity on TSLA: Gianarikas said there are risks and the current environment surrounding Tesla "is tricky" in a new investor note.

The analyst said the opportunity for robotaxis, FSD and more new products remains the key for the company.

"We believe in the long-term vision. Tesla has multiple generational growth drivers over the long term," Gianarikas said.

The analyst said the rest of the year will be important for the future of Tesla.

“The bottom line is that for the stock to work, to get its mojo back, the growth arc must materially turn positive," the analyst noted.

TSLA Price Action: Tesla stock is up 6.38% to $253.19 on Wednesday versus a 52-week trading range of $157.40 to $488.54.

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