Tesla Inc (NASDAQ:TSLA) is gearing up for a pivotal few months, with new vehicle launches, advancements in autonomous driving, and CEO Elon Musk’s growing involvement in external ventures stirring debate.
The electric vehicle maker’s stock has had a bumpy start to 2025, following a post-election surge in November. Now, as Tesla prepares to roll out key initiatives, investors are weighing the potential upside against concerns about Musk’s focus.
One of the biggest events on the horizon is the launch of an updated Model Y, known as Juniper, set to debut in both the US and China in the coming week.
Analysts at Wedbush believe this release could help boost demand in two of Tesla’s most important markets. In addition, Tesla plans to introduce a lower-cost vehicle before July, which could be a game-changer for global deliveries and help address affordability concerns among consumers.
Another major milestone is the launch of Tesla’s Full Self-Driving (FSD) system in Austin this June.
This marks an important step in Tesla’s push toward autonomous vehicles, a sector Wedbush estimates could add $1 trillion to Tesla’s valuation over time. With competition in the US and China heating up, Tesla’s continued innovation in this space will be closely watched.
However, some investors are worried about Musk’s growing involvement with DOGE, the newly formed Trump administration's Department of Government Efficiency.
While Wedbush acknowledges that Musk’s political interests may alienate some consumers, the firm sees these as “containable brand issues” that are unlikely to derail Tesla’s long-term growth.
Despite concerns, Wedbush maintains its confidence in Musk’s ability to juggle multiple ventures, pointing out that Tesla’s technology and innovation pipeline remains strong.
With the company expected to produce 10 million vehicles by early 2026, its long-term growth story remains intact, even if delivery growth in 2025 slows slightly.
Wedbush continues to rate Tesla as 'outperform' with a 12-month price target of $550, significantly above its current stock price of $337.80. With the Model Y Juniper launch and the Austin FSD rollout approaching, the next few months will be crucial in determining Tesla’s trajectory.
Ahead of the bell, the shares were up 0.5% at $339.38.