Tesla bull thesis remains unchanged despite recent selloff, Wedbush says
Tesla’s positive outlook- on autonomous vehicles and looser regulations under President Donald Trump- remains unchanged, Wedbush said in a Wednesday note, even as the stock nurses a sharp selldown so far in 2025, News.az reports citing BBC.
Wedbush said its bullish thesis on Tesla Inc (NASDAQ:TSLA) remained unchanged despite “street agita,” and that the company’s autonomous driving plans, coupled with CEO Elon Musk’s growing influence in the Trump administration, would still unlock $1 trillion in valuation over the coming years.
The brokerage said that Tesla was gearing up for a mass market vehicle launch in the first half of 2025- the company’s long-awaited affordable electric vehicle. The EV maker’s product developments in autonomous vehicles and its Optimus robot, its plans to roll out full self driving in Austin, and other EV and battery ventures still served as potential catalysts for the stock.
Wedbush also expects the company to land some carveouts in tariff discussions with China, as a Sino-U.S. trade war escalates under Trump. China is a major market for Tesla, but has also been a major source of anxiety for the EV maker, as it grapples with heightened competition in the country, especially from local players such as BYD (SZ:002594).
BYD (HK:1211) recently unveiled its own plans for autonomous vehicles, and will include them in models priced as low as $10,000- a major point of competition for Tesla.
Tesla is the worst-performing stock among its Magnificent 7 peers this year, trading down about 11%, compared to a 3.1% rise in the S&P 500.
Similar news
