Tesla Shares Tank, But the Company’s Future Might Be Brighter Than You Think
Since the December post-election peak, Tesla’s stock has dropped by around 47%, indicating a difficult period for the company. Some claim that Elon Musk’s political activities, which have unnerved some investors, are largely to blame for that fall. Mickey Legg, a benchmark analyst, believes the downturn is an overreaction, nevertheless.
According to him, the difficulties posed by fierce competition, increased tariffs, and an aging model lineup are temporary problems rather than indications of more serious problems. Legg cites several arguments for his continued optimism.
We believe the recent stock pullback and sales declines, while significant, are overblown considering the near-term issues impacting the company and the scope of opportunities around the corner,
Legg
Tesla’s Robotaxi Launch Set for June: Will It Disrupt the Ride-Share Market?
In the second quarter, Tesla will introduce a new model, and in June, its eagerly anticipated robotaxi service will finally start in Austin. Legg believes it has the potential to grow rapidly, even if it begins small.
Additionally, he is keeping an eye on Tesla’s foray into robots through the Optimus project, which may eventually cause the business to move beyond auto manufacturing. Legg still sees about 39% potential from here, even though he reduced his 12-month price objective from $475 to $350. Additionally, Tesla may be able to avoid some of the tariffs that other companies are paying because its production is concentrated in North America.
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