Investor's Corner
Tesla bull Wedbush breaks down Trump vs. Harris pros and cons
Tesla bull Wedbush is weighing the positives and negatives of both potential White Houses as Donald Trump and Kamala Harris will attempt to win the presidency at the polls tomorrow.
Heading into the election, Tesla is one of many companies that will feel the impact of both candidates. CEO Elon Musk has heavily backed Donald Trump and has been extremely vocal about his discontent with Kamala Harris.
Making sure no stone is unturned in his political narrative, Musk has essentially catalyzed what is now an extremely polarizing Tesla ownership base: some owners have adopted his right-wing stance, while others have chosen to distance themselves from the brand altogether.
While consumers are obviously a big part of the story, Dan Ives of Wedbush is looking at Tesla’s outlook in terms of regulation, tariffs, tax credits, and other factors depending on who gets into the White House.
Tesla with a Trump White House
In a new note to investors, Ives says Tesla would feel a “clear competitive advantage” in the instance of a Trump White House because he would likely bring a “non-EV subsidy environment.”
-->Tesla’s “scale and scope,” along with Musk’s relationship with Trump, would spell major advantages for the company, but there are also some caveats:
“Musk doubling down on Trump clearly could have a negative impact on some aspect of its EV consumer demand, especially in the US. For now, the “Musk betting on Trump bet” has seen a limited negative impact on demand in the US although clearly, this political dynamic could impact some customers to go away from Tesla when buying decisions ultimately come around over the next year. For now, it’s a contained negative impact for Tesla around this political dynamic; however, it’s a political bet for Musk that has positives but also has negative consequences that could backfire.”
Ives continues by saying that Trump being elected would have a “harsher stance on China around tariffs and trade policy.” Ives brings up concerns that Beijing would likely launch policies that are more retaliatory and could invoke a trade war that would be coupled with geopolitical headwinds that could make things complicated for Tesla in the country.
Trump winning the White House for the second time could have a “wild card” effect on China, which Ives believes Wall Street will look at as a negative.
Elon Musk says Trump ‘must win’ election to ‘preserve democracy’
-->There are also plenty of positives in Ives’s view. One is the acceleration of Full Self-Driving and autonomy initiatives, which would benefit not only Tesla but also other companies like Waymo:
“The autonomous fast-tracking will be front and center for investors in this scenario as some of the 2026/2027 goals for Tesla could be accelerated to stay on track with the China timeline for autonomous currently underway.”
Tesla with a Harris White House
Wedbush says that Harris winning the presidency would mean positives for all EV makers as the tax credit would likely expand in an effort to get more people to turn to electric cars.
Additionally, legacy companies that are unionized, like General Motors, Ford, and Stellantis, would thrive in a Harris White House, while it would be “likely a neutral/slight negative impact for Tesla.”
Wedbush’s note focuses primarily on the potential for Trump’s presidency and not Harris, which is the reason for the relatively limited comments on what the EV landscape would look like if the Democrat wins.
-->Additionally, things would likely continue as they are because of Harris’s admittance that she would not do much different than current President Joe Biden.
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Investor's Corner
Mizuho keeps Tesla (TSLA) “Outperform” rating but lowers price target
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected.
Mizuho analyst Vijay Rakesh lowered Tesla’s (NASDAQ:TSLA) price target to $475 from $485, citing potential 2026 EV subsidy cuts in the U.S. and China that could pressure deliveries. The firm maintained its Outperform rating for the electric vehicle maker, however.
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected. The U.S. accounted for roughly 37% of Tesla’s third-quarter 2025 sales, while China represented about 34%, making both markets highly sensitive to policy shifts. Potential 50% cuts to Chinese subsidies and reduced U.S. incentives affected the firm’s outlook.
With those pressures factored in, the firm now expects Tesla to deliver 1.75 million vehicles in 2026 and 2 million in 2027, slightly below consensus estimates of 1.82 million and 2.15 million, respectively. The analyst was cautiously optimistic, as near-term pressure from subsidies is there, but the company’s long-term tech roadmap remains very compelling.
Despite the revised target, Mizuho remained optimistic on Tesla’s long-term technology roadmap. The firm highlighted three major growth drivers into 2027: the broader adoption of Full Self-Driving V14, the expansion of Tesla’s Robotaxi service, and the commercialization of Optimus, the company’s humanoid robot.
“We are lowering TSLA Ests/PT to $475 with Potential BEV headwinds in 2026E. We believe into 2026E, US (~37% of TSLA 3Q25 sales) EV subsidy cuts and China (34% of TSLA 3Q25 sales) potential 50% EV subsidy cuts could be a headwind to EV deliveries.
-->“We are now estimating TSLA deliveries for 2026/27E at 1.75M/2.00M (slightly below cons. 1.82M/2.15M). We see some LT drivers with FSD v14 adoption for autonomous, robotaxi launches, and humanoid robots into 2027 driving strength,” the analyst noted.
Tesla stock (NASDAQ: TSLA) has landed an elusive “must own” status from Wall Street firm Melius, according to a new note released early this week.
Analyst Rob Wertheimer said Tesla will lead the charge in world-changing tech, given the company’s focus on self-driving, autonomy, and Robotaxi. In a note to investors, Wertheimer said “the world is about to change, dramatically,” because of the advent of self-driving cars.
He looks at the industry and sees many potential players, but the firm says there will only be one true winner:
“Our point is not that Tesla is at risk, it’s that everybody else is.”
The major argument is that autonomy is nearing a tipping point where years of chipping away at the software and data needed to develop a sound, safe, and effective form of autonomous driving technology turn into an avalanche of progress.
Wertheimer believes autonomy is a $7 trillion sector,” and in the coming years, investors will see “hundreds of billions in value shift to Tesla.”
A lot of the major growth has to do with the all-too-common “butts in seats” strategy, as Wertheimer believes that only a fraction of people in the United States have ridden in a self-driving car. In Tesla’s regard, only “tens of thousands” have tried Tesla’s latest Full Self-Driving (Supervised) version, which is v14.
Tesla Full Self-Driving v14.2 – Full Review, the Good and the Bad
When it reaches a widespread rollout and more people are able to experience Tesla Full Self-Driving v14, he believes “it will shock most people.”
Citing things like Tesla’s massive data pool from its vehicles, as well as its shift to end-to-end neural nets in 2021 and 2022, as well as the upcoming AI5 chip, which will be put into a handful of vehicles next year, but will reach a wider rollout in 2027, Melius believes many investors are not aware of the pace of advancement in self-driving.
Tesla’s lead in its self-driving efforts is expanding, Wertheimer says. The company is making strategic choices on everything from hardware to software, manufacturing, and overall vehicle design. He says Tesla has left legacy automakers struggling to keep pace as they still rely on outdated architectures and fragmented supplier systems.
Tesla shares are up over 6 percent at 10:40 a.m. on the East Coast, trading at around $416.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
-->Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Tesla FSD V14.2.1 is earning rave reviews from users in diverse conditions
Tesla FSD Supervised ride-alongs in Europe begin in Italy, France, and Germany
