President Trump’s purchase of a Tesla vehicle last week highlighted the close ties between the administration and CEO Elon Musk. However, Musk’s alignment with the administration poses risks, as Trump remains polarizing, and early signs indicate Tesla’s affiliation is affecting sales in the U.S., Canada, and Europe. TSLA shares have dropped nearly 40% in 2025 due to fears of a trade war and weakening sales. Despite this, top investor The Asian Investor sees the recent share price slump as an attractive entry point. The investor argues that Tesla’s growth prospects remain strong, citing 20-30% delivery growth expected in 2025 due to the Cybertruck and Model Y. While emphasizing the cheaper Model Y could affect margins, Tesla continues to generate significant net income and free cash flow. The Asian Investor rates TSLA a Buy, viewing the sell-off as an opportunity to build a long-term position. Wall Street remains cautious, with a Hold consensus rating, yet TSLA’s 12-month average price target suggests a potential ~32% upside. — news from TipRanks
