Tesla Stock On the Rise Despite Recent Challenges
Tesla stock (NASDAQ: TSLA) has faced significant challenges in recent months, with CEO Elon Musk’s involvement in the United States Government and other factors such as tariffs and lower-than-expected delivery figures putting pressure on the company’s shares.
Despite these obstacles, analyst Mickey Legg from Benchmark believes that concerns about Tesla’s short-term performance are exaggerated. Legg suggests that investors should focus on the promising future prospects of the company rather than the current pullback in share prices, which have dropped by 32 percent since the beginning of the year.
In a note to investors, Legg stated, “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.”
The stock has faced challenges in 2025, with some questioning Musk’s dedication to Tesla due to his involvement with the Department of Government Efficiency (DOGE). However, Musk’s role with DOGE is expected to end soon, alleviating concerns about his divided attention.
Looking ahead, Tesla has exciting plans in the pipeline, including the launch of affordable models in the first half of the year and the introduction of Tesla-operated robotaxis as a paid service in Austin, TX scheduled for June. These developments are expected to boost vehicle sales and expand Tesla’s operations to other cities.
Legg believes that a reduced role for Musk in DOGE would have a positive impact on the stock, stating, “Recent headlines suggest Musk could be reducing his role with the White House, and we can see political backlash diminishing as the year progresses. In our view, there is significant potential for a stock rebound, and we believe the breadth of near-term opportunities outweigh headwinds.”
As of 3:22 p.m. on the East Coast, Tesla shares are up over 20 percent, indicating a positive trend for the company.