- Despite a 40% YTD drop, I remain bullish on Tesla due to its diversified revenue streams and potential regulatory tailwinds.
- Tesla’s Q1 delivery miss is minimal in the long run, with the company benefiting from a transforming auto industry and stronger non-auto revenues.
- Valuation suggests a 35.24% upside, projecting a share price of $325, driven by robust growth in Tesla’s energy and autonomous driving sectors.
- Musk’s involvement in DOGE is a concern, but Tesla’s strong foundation and diversified revenue base make it a strong buy.
Investment Thesis
Shares of EV giant Tesla (NASDAQ:TSLA) (TSX:TSLA:CA) experienced a big spike and drop off in the last six months with founder and CEO, Elon Musk, a staunch supporter of the President, joining his administration as part of DOGE. While this article is being written about five months after the election and two-and-a-half months after the inauguration of Donald Trump, it’s clear that the dust has not settled. At this time, I do not think it’s super evident that the Trump administration will necessarily be net bullish for the EV maker.
Despite this, shares are down actually less than the overall market over the last 5 and a half months, sporting a roughly 5.72% drop since the last time I wrote on the electric vehicle maker. Unfortunately, shares are down 40.23% year-to-date. The stock pushed as high as $488.54 per share back in late December, but has since fallen off significantly.
READ FULL ARTICLE HERE!
