Tesla’s Selloff Over Musk’s Politics Is Overblown, Says Analyst

​Tesla’s stock has been on a downward spiral, dropping 35 percent this year as investors worry about Elon Musk’s political involvement. But according to Dan Ives of Wedbush Securities, the selloff is overdone and investors are missing the bigger picture.

Ives, one of Wall Street’s most bullish Tesla analysts, maintains a $550 price target and argues that fears over Musk’s association with Trump and DOGE are exaggerated. He believes that less than 5 percent of Tesla’s global sales are actually at risk due to Musk’s political stance, despite the media frenzy surrounding the issue.

What’s Really Hurting Tesla?
While Musk’s politics have made headlines, Tesla’s real problem is declining sales in key markets. In January and February, Tesla saw:
• A 76 percent drop in sales in Germany, marking the second consecutive month of steep declines.
• A 49 percent sales slump in China, its second-largest market.
• U.S. protests and brand concerns, as some consumers push back against Musk’s public statements.

Despite these setbacks, Ives argues that Tesla’s long-term growth story remains intact, especially as it ramps up autonomous driving and AI development.

Why Wedbush Still Believes in Tesla
Ives is convinced that Musk will eventually balance his time between DOGE, Tesla, and SpaceX, easing concerns about leadership distractions. He also believes that Tesla’s real value lies in its upcoming innovations, particularly:
• The rollout of unsupervised full self-driving (FSD) in Austin this June.
• A sub-$35,000 mass-market EV, expected to launch before summer.
• Tesla’s Optimus robot and AI advancements, which Ives predicts will drive 90 percent of Tesla’s valuation in the future.

Wedbush also sees Tesla’s long-term valuation exceeding $2 trillion, positioning it as a leader in autonomous technology and robotics rather than just an automaker.

What’s Next for Tesla?
Tesla bulls and bears remain deeply divided. Some analysts argue that Tesla needs to regain sales momentum before the stock can rebound, while others believe that short-term negativity is overshadowing long-term growth potential.

For now, investors must decide whether Tesla’s decline is a temporary setback or a fundamental shift in its business trajectory. Ives remains firmly in the bullish camp, arguing that Wall Street is underestimating Tesla’s future innovations.







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