Elon Musk
Tesla stock woes are ‘overblown’ considering long-term catalysts: analyst
“We believe the recent stock pullback and sales declines, while significant, are overblown considering the near-term issues impacting the company and the scope of opportunities around the corner.”
Tesla stock (NASDAQ: TSLA) has been under tremendous pressure as a result of CEO Elon Musk’s involvement in the United States Government and other factors, like tariffs and lower-than-expected delivery figures.
However, one analyst says that the concerns regarding Tesla’s short-term performance are “overblown”, considering all the things the company has in the works for the future.
Mickey Legg, an analyst for Benchmark, wrote in a note on Wednesday that much of the negative narrative that has hovered over Tesla shares for the past few months is exaggerated. Instead of looking at the near-term pullback on shares that has seen a 32 percent drop in share price since the beginning of the year, Legg is encouraging investors to look at the catalysts that lie ahead.
Legg wrote in the note to investors (via MarketWatch):
“We believe the recent stock pullback and sales declines, while significant, are overblown considering the near-term issues impacting the company and the scope of opportunities around the corner. After appreciating over 90% to a high of $488 after the Presidential election, the stock has pulled back to sub-$300 levels.”
The stock has felt immense pressure in the early portion of 2025, especially as some investors are questioning Musk’s focus on Tesla, with some arguing that his CEO role has seemingly taken a backseat to his responsibilities with the Department of Government Efficiency (DOGE).
Additionally, his capacity in the government has drawn some unwarranted criticism from some, resulting in vandalism and violence from his opposition.
However, Musk’s role with DOGE will eventually come to a close, and Legg is looking forward to that, as well as other catalysts that Tesla has announced in the past. For example, the company said it plans to launch affordable models in the first half of this year:
“Our focus is on the release of a new TSLA model in 2Q25, which in our view could turn around the recent decline in vehicle sales. Furthermore, we’re cautiously optimistic about the rollout of Tesla operated robotaxis as a paid service in Austin, TX scheduled for June. While the scope of the initial rollout is expected to be limited, we are focused on the rate of expansion of the operation both in Austin and to other cities.”
Legg finished by stating that he is under the impression that a reduced capacity in DOGE by Musk would be massive for the stock:
“Recent headlines suggest Musk could be reducing his role with the White House, and we can see political backlash diminishing as the year progresses. In our view there is significant potential for a stock rebound, and we believe the breadth of near-term opportunities outweigh headwinds.”
Tesla shares are up over 20 percent as of 3:22 p.m. on the East Coast.
Elon Musk appeared on the Moonshots podcast with Peter Diamandis today to discuss AGI, U.S. vs. China, Tesla, and some other interesting topics, but there was some discussion about the upcoming unveiling of the Roadster, the company’s electric supercar that will arrive several years after it was initially slated for release.
Musk made some pretty amazing claims about the Roadster; we already know it is supposed to be lightning-fast and could even hover, if Tesla gets everything to happen the way it wants to. However, the car has some pretty crazy capabilities, some of which have not even been revealed.
On the podcast, Musk said:
“This is not a…safety is not the main goal. If you buy a Ferrari, safety is not the number one goal. I say, if safety is your number one goal, do not buy the Roadster…We’ll aspire not to kill anyone in this car. It’ll be the best of the last of the human-driven cars. The best of the last.”
🚨 Elon on the Roadster unveiling, scheduled for April 1:
— TESLARATI (@Teslarati) January 6, 2026
Musk makes a good point: people who buy expensive sports cars with ridiculous top speeds and acceleration rates do not buy them to be safe. They hope they are safe in case of an emergency or crash, but safety is not at the forefront of their thoughts, because nobody buys a car thinking they’ll crash it.
The Roadster is truly going to push the limits and capabilities of passenger vehicles; there’s no doubt about that. Tesla plans to show off the new version car for the first time on April 1, and Musk has only hinted at what is possible with it.
Musk said back in November:
“Whether it’s good or bad, it will be unforgettable. My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars. I think if Peter wants a flying car, he should be able to buy one…I think it has a shot at being the most memorable product unveiling ever. [It will be unveiled] hopefully before the end of the year. You know, we need to make sure that it works. This is some crazy technology in this car. Let’s just put it this way: if you took all the James Bond cars and combined them, it’s crazier than that.”
Production is set to begin between 12 and 18 months after the unveiling, which would put the car out sometime in 2027. Hopefully, Tesla is able to stay on track with the scheduling of the Roadster; many people have been waiting a long time for it.
Elon Musk
Tesla stands to gain from Elon Musk’s rekindled friendship with President Trump
“He’s 80% super genius and 20% he makes mistakes, but he’s a good guy. He’s a well-meaning person.”
Tesla CEO Elon Musk and President Donald Trump are back in each other’s good graces, and after a lengthy period where the two were at odds, the pair seemed to make up back in September.
The two were spotted at dinner at Trump’s Mar-a-Lago estate in West Palm Beach over the weekend, which was followed by a press conference on Air Force One, where the President called Musk, “great.”
He continued:
“He’s 80% super genius and 20% he makes mistakes, but he’s a good guy. He’s a well-meaning person.”
Musk previously had a position in Trump’s White House, as he was in charge of reducing government spending and waste by leading the Department of Government Efficiency (DOGE). Musk stepped back from his role in the government last year to focus on Tesla and SpaceX, as well as other projects.
Trump tonight on @elonmusk: “Elon’s great. He’s 80% super genius and 20% he makes mistakes, but he’s a good guy. He’s a well meaning person.” pic.twitter.com/QUprw06bie
— Sawyer Merritt (@SawyerMerritt) January 5, 2026
However, Musk, back in Trump’s good graces, stands to get some assistance for Tesla from the White House moving forward, especially as he and the President are back to being friends and allies.
Reduced Scrutiny from a Regulatory Standpoint
Tesla has been the subject of several National Highway Traffic Safety Administration (NHTSA) probes, including ones that dive into Autopilot and Full Self-Driving and incidents involving the two.
Trump has already initiated a more relaxed environment for autonomous vehicle oversight. Last January, he proposed a voluntary framework system for self-driving vehicles, which reduced barriers for companies involved with autonomy.
In April, he relaxed crash reporting and exemptions for autonomous vehicles, creating a clearer pathway for companies to innovate and easing compliance burdens.
In September, Transportation Secretary Sean P. Duffy led efforts to update FMVSS, eliminating redundant human-driver requirements. This aimed to create a single national standard, boosting deployment and eliminating much of the bureaucracy that stalls innovation.
Favorable Autonomous Vehicle Framework
Some of the moves that were mentioned previously will assist Tesla in rolling out its Robotaxi network across the country, and although it currently has to go through the process on a state-level, things could become easier for Tesla and other companies exploring self-driving vehicles.
Musk could have a direct line to Trump that would help create fewer regulatory barriers for the companies involved in developing autonomous vehicles, which would directly benefit Tesla, but also its competitors like Waymo.
Protection from International Competition via Trade Policies
It is no secret that the President is focused on domesticating manufacturing, AI efforts, and everything in between. This is enforced by the tariffs the White House enforced last year, which have prioritized U.S.-based companies.
This could shield Tesla from potential foreign competitors, especially ones like BYD, which have been formidable opponents.
Overall, these gains stem from a more aligned political environment, where Musk’s influence could prioritize deregulation over enforcement; this leads to more innovation and relaxed regulations, but there are some risks. However, outcomes are dependent on the depth of President Trump and Musk’s reconciliation.
Long-term benefits to Tesla would require concrete policy actions.
Elon Musk
Tesla CEO Elon Musk drops massive bomb about Cybercab
“And there is so much to this car that is not obvious on the surface,” Musk said.
Tesla CEO Elon Musk dropped a massive bomb about the Cybercab, which is the company’s fully autonomous ride-hailing vehicle that will enter production later this year.
The Cybercab was unveiled back in October 2024 at the company’s “We, Robot” event in Los Angeles, and is among the major catalysts for the company’s growth in the coming years. It is expected to push Tesla into a major growth phase, especially as the automaker is transitioning into more of an AI and Robotics company than anything else.
The Cybercab will enable completely autonomous ride-hailing for Tesla, and although its other vehicles will also be capable of this technology, the Cybercab is slightly different. It will have no steering wheel or pedals, and will allow two occupants to travel from Point A to Point B with zero responsibilities within the car.
Tesla shares epic 2025 recap video, confirms start of Cybercab production
Details on the Cybercab are pretty face value at this point: we know Tesla is enabling 1-2 passengers to ride in it at a time, and this strategy was based on statistics that show most ride-hailing trips have no more than two occupants. It will also have in-vehicle entertainment options accessible from the center touchscreen.
It will also have wireless charging capabilities, which were displayed at “We, Robot,” and there could be more features that will be highly beneficial to riders, offering a full-fledged autonomous experience.
Musk dropped a big hint that there is much more to the Cybercab than what we know, as a post on X said that “there is so much to this car that is not obvious on the surface.”
And there is so much to this car that is not obvious on the surface
— Elon Musk (@elonmusk) January 2, 2026
As the Cybercab is expected to enter production later this year, Tesla is surely going to include a handful of things they have not yet revealed to the public.
Musk seems to be indicating that some of the features will make it even more groundbreaking, and the idea is to enable a truly autonomous experience from start to finish for riders. Everything from climate control to emergency systems, and more, should be included with the car.
It seems more likely than not that Tesla will make the Cybercab its smartest vehicle so far, as if its current lineup is not already extremely intelligent, user-friendly, and intuitive.
Elon Musk just said some crazy stuff about the Tesla Roadster
Tesla launches hiring for Robotaxi program in its twentieth country
