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Investing.com -- New vehicle launches and the rollout of the Full Self-Driving (FSD) solution could act as key growth catalysts for Tesla Inc (NASDAQ:TSLA) in the coming months, according to Wedbush analysts.
Despite recent pressures on the stock, which have been attributed to CEO Elon Musk’s involvement with the Trump administration and the DOGE initiative, analysts believe these factors do not detract from Tesla’s long-term potential.
The key concern is that Musk’s deep involvement with DOGE is diverting his attention from Tesla at a crucial time. With competition in autonomous and robotics technology intensifying in the US and China, many investors worry that Musk’s focus on DOGE creates a negative perception about his commitment to Tesla.
“The bears will now focus on this DOGE issue, isolated protests, brand worries as their latest narrative, but the reality is this does not change the future of Tesla,” analysts led by Daniel Ives said in a note.
The electric vehicle (EV) giant is preparing for the launch of a new mass-market vehicle in the first half of 2025, as well as significant developments in autonomous and Optimus technology across its production ecosystem.
The upcoming release of the Model Y Juniper in the United States and China over the next week is expected to stimulate demand in these critical markets.
“This is the first of many launches ahead as we fully expect a lower cost vehicle from Tesla to hit the roads prior to July and could prove to be a much-needed growth catalyst for global deliveries,” analysts noted.
Furthermore, an unsupervised FSD launch in Austin is scheduled for June, alongside other catalysts in the EV and battery spaces.
Some consumers may be alienated by Musk’s political associations and DOGE activities, with momentum for this sentiment observed in Europe and parts of the US since November. However, Wedbush’s team said Musk has a good track record of balancing multiple initiatives and accelerating innovation at Tesla.
Put simply, Wedbush views these as containable brand issues that are not significantly worrisome at present.
With Tesla having produced 7 million vehicles since 2012 and on track to reach 10 million by early 2026, the company’s focus on autonomous and FSD technology is seen as the core of its long-term growth narrative.
“If deliveries in 2025 go from ~20% growth to ~10% growth while that moves the needle on numbers this year, the core long term valuation and Tesla growth story is relatively unchanged in our view,” analysts noted.
Wedbush reiterated an Outperform rating on Tesla stock, and its price target of $550.