Elon Musk to the Rescue? Here's What This Investor Expects for Tesla Stock
The market continues to cheer CEO Elon Musk's decision to devote more of his attention towards running Tesla, Inc. (NASDAQ:TSLA), which the businessman-turned- Trump official shared on the company's Q1 2025 earnings call.
Confident Investing Starts Here:
Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Though the numbers were not exactly stellar – EV deliveries were down, and the company missed on both top- and bottom-line expectations – investors were heartily encouraged by the shift in Musk's priorities. TSLA's share price has gained over 40% since the late April earnings report.
Is this 'Musk Bump' sustainable or will the exuberance flame out? Investor Bohdan Kucheriavyi is worried that the company may not be able to fully recover from the harm caused by Musk's political activities.
'While Elon Musk has recommitted to his role recently, it's possible that some of the damage is permanent and the company's sales demand might be down 10% in the future,' explains the 5-star investor. 'Elon Musk can't save this anymore.'
Kucheriavyi highlights April sales data to demonstrate that Tesla is in a world of trouble. Declining Tesla registrations in France (down 59% year-over-year), fewer sales in Germany (down 46% year-over-year), and weakening sales in the United Kingdom (down 62% year-over-year) reflect the severity of this problem.
In China, Tesla sales numbers also dropped by 6% year-over-year – while rival BYD just notched its best sales week of 2025. Adding insult to injury, Kucheriavyi also notes that global EV sales increased by 30% in the month of April.
'It makes sense to assume that the recent damage to Tesla's brand has certainly made it harder for the company to attract new customers,' adds the investor.
Looking domestically, Kucheriavyi does not find much reason for cheer. The investor points out that Ford's F-150 Lightning recently overtook the Cybertruck as the best-selling electric pick-up truck, while the Republican-led U.S. Congress is likely to eliminate a $7,500 EV tax incentive that Tesla consumers have benefitted from.
The investor also offers a stern reminder that TSLA's valuations are on the steeper side, and are currently trading at more than 180x the company's forward earnings. This puts TSLA at risk for some severe losses up ahead.
'Considering that Tesla continues to trade at aggressive multiples at a time when its upside seems limited, it's becoming harder to be bullish about its stock with each passing day,' concludes Kucheriavyi, who rates TSLA a Sell. (To watch Bohdan Kucheriavyi's track record, click here)
Wall Street is a bit torn over TSLA's prospects. With 16 Buy, 10 Hold, and 11 Sell ratings, TSLA has a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $282.70 would translate into losses of ~17%. (See TSLA stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
4 hours ago
- CTV News
Amazon's healthcare business to be divided into six units after losing top health executives
An Amazon company logo marks the facade of a building, March 18, 2022, in Schoenefeld near Berlin. (AP Photo/Michael Sohn, File) Amazon said on Friday its healthcare business will be divided into six new units as part of a restructuring effort, in a move that comes after recent top health executive departures. The company's chief medical officer, Sunita Mishra, stepped down last month, while Aaron Martin, who has been the vice president of the healthcare unit, is also set to step down. This reorganization follows a series of other executive departures, including Vin Gupta, who served as chief medical officer of Amazon Pharmacy, and Trent Green, the CEO of One Medical. Neil Lindsay, senior vice president of Amazon Health Services, said in an email to Reuters that these updates 'reflect a broader strategy to better deliver for patients and accelerate innovation across the business.' 'If we can make one thing a little bit easier for a lot of people, we'll save them a lot of time, a lot of money, and some lives,' Lindsay added. Amazon has been expanding into the healthcare industry for years, starting with the acquisition of PillPack for US$750 million in 2018 and the launch of Amazon Pharmacy in 2020. It bought One Medical for about US$3.9 billion in 2023 to gain access to primary care clinics and a membership model. In February 2024, Amazon eliminated 115 jobs across its healthcare units, Lindsay had said in a letter to employees. A person cited by Business Insider, which first reported the job cuts, estimated up to 400 employees could lose their jobs. CNBC first reported the restructuring efforts earlier on Friday. The e-commerce giant has been working on an overhaul for the past several months, the CNBC report said, adding that Amazon has not conducted any broad layoffs as part of this reorganization. --- Reporting by Siddhi Mahatole and Mariam Sunny in Bengaluru; Editing by Alan Barona
Globe and Mail
6 hours ago
- Globe and Mail
Minister Solomon concludes a successful visit to VivaTech 2025 in Paris
Canada's participation as Country of the Year is a testament to the strength of its AI ecosystem PARIS, June 13, 2025 /CNW/ - Today, the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario, concluded a successful visit to Paris, France, where he met with key industry and political leaders to advance Canada's growth agenda.
CTV News
8 hours ago
- CTV News
Fast-fashion retailer Shein's transport emissions jump in 2024
A page from the Shein website is shown in this photo, in New York on June 23, 2023. (AP Photo/Richard Drew, File) LONDON — Shein's carbon emissions from transporting products climbed 13.7 per cent in 2024, the online fast-fashion retailer's sustainability report showed on Friday, and its 2023 transport emissions were 18 per cent higher than previously reported after a recalculation. Shein uses mainly air freight to send cheap clothes directly from suppliers in China to shoppers in 150 markets worldwide, a more carbon-intensive supply chain model compared with traditional apparel retailers that ship more of their products on container vessels. Shein said it planned to produce, package, and ship closer to its customers as a way to lower emissions and cut delivery times and shipping costs. It increased its use of sea freight and trucking in 2024, according to the report. 'We do have localized places like Brazil, like Turkey ... so all these things are in the works. Are we fast enough? Are we perfect? Of course not. There are a lot of things that we have to do,' Shein executive chairman Donald Tang said, speaking at the Viva Technology conference in Paris on Friday after the report was published. France's Senate on Tuesday approved a revised version of a fast fashion law that, if implemented, would ban advertising by Shein and its rival Temu, with French lawmakers criticizing Shein's environmental footprint. Shein argues its business model allows it to produce according to demand and leaves it with less unsold inventory than traditional clothing retailers, minimizing waste. Founded in China and headquartered in Singapore, Shein sources most of its products from 7,000 suppliers in China, but also has a growing network of factories in Brazil and Turkey. Emission targets Emissions from transporting products to and between Shein facilities, and to customers, including returns, were 8.52 million metric tons of CO2 equivalent in 2024, up from 7.49 million metric tons of CO2e in 2023, according to the report. Shein's transport emissions for 2024 are more than three times those of Zara owner Inditex, which reported 2.61 million tons of CO2e for its 2024 financial year, a 10 per cent increase on 2023 as the Spanish firm also used more air freight. Shein said its 2023 emissions were recalculated after an update to its methodology. Last year it reported a 2023 figure of 6.35 million metric tons. Steep tariffs imposed by the United States on Chinese goods have made it more urgent for Shein to diversify its supplier base, as the U.S. is its biggest market. The company aims to go public and has shifted its focus to a Hong Kong initial public offering after failing to win Chinese securities' regulatory approval to proceed with a planned London listing. Shein's emissions reduction targets, approved last month by the Science-Based Targets Initiative, are for a 25 per cent reduction in Scope 3 (indirect) emissions by 2030, compared with 2023. In the sustainability report Shein, which has also faced criticism over working conditions in its supply chain, said it ended 12 supplier relationships in 2024 due to violations of its policies, up from five in 2023. Shein conducted 4,288 on-site audits on its suppliers and subcontractors in China over the year, up from 3,990 in 2023. --- Reporting by Helen Reid; Editing by Louise Heavens and Alison Williams
