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.

Tesla (NASDAQ:TSLA) is one of the stocks in the “Magnificent Seven,” which is comprised of U.S. tech companies that have driven notable market growth. But as per finance veteran Jim Cramer, electric vehicle maker Tesla no longer qualifies for the group’s moniker.

Cramer shared his thoughts about the matter in a comment to CNBC.

Not “Magnificent” Anymore

The Magnificent Seven (Mag 7) stocks are comprised of Apple, Microsoft, Amazon, Alphabet, Meta Platforms, Tesla, and Nvidia. The companies are known for their large market caps, innovation, and domination in their respective fields. As per Cramer in his recent comments, however, there are essentially no Mag 7 stocks anymore amid the fallout of U.S. President Donald Trump’s tariffs.

“You can buy some low multiple techs, industrials, and banks here. We did that for the charitable trust today, right under the teeth of the selloff. I would not jump back into the Magnificent 7 because, as of tonight, there is no ‘Mag 7’ anymore. I came up with that name, and I’m scrapping it right now — no moniker fits the two or three that remain viable. And I’m not going to put it out there — there’s nothing magnificent about Tesla or Nvidia,” Cramer noted.

Trump Tariffs

Donald Trump’s tariffs are expected to affect a variety of industries, including automakers like Tesla. Despite this, Tesla’s domestic factories such as Gigafactory Texas and the Fremont Factory should shield Tesla to some degree. As per TD Cowen analyst Itay Michaeli, “Tesla (is) a relative beneficiary given [its] 100% U.S. production footprint, substantial U.S. sourcing, and with Model Y competing in a midsize crossover segment where close to ~50% of vehicles could be subject to tariffs.”

Elon Musk, however, has noted that the effects of Trump’s tariffs to Tesla are no joke. “To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial,” Musk wrote in a post on X. 

Counterpoint Research has estimated that Chinese automaker BYD will be able to overtake American electric car maker Tesla in Battery Electric Vehicle (BEV) sales this 2025.

Counterpoint’s insights were shared by the market researcher on its official website.

The (Counter)Point

Counterpoint Research’s latest Global Passenger EV Forecast suggests that BYD will be capturing a 15.7% global market share this year. This is expected to be driven by scale, innovation, and strong backing from the Chinese government.

The market researcher highlighted a number of factors that could help BYD become the world’s premier BEV maker this year. These include the company’s 1,000-kW ultra-fast charging technology and 10C charging rate batteries, which exceed Tesla’s current Supercharger offerings.

“The system can deliver 400 km of range in just 5 minutes, setting a new industry benchmark, far outpacing Tesla’s Supercharger, which adds about 275 km in 10 minutes. This technological leap is expected to significantly ease consumer concerns around charging time and boost EV adoption by reducing charging anxiety,” Abhik Mukherjee, Research Analyst at Counterpoint, stated. 

The Tesla Factor

Counterpoint argued that Tesla, in comparison, is confronting several challenges, from damaged public perception due to CEO Elon Musk’s politics to geopolitical tensions between the United States and key markets like China. The market researcher highlighted Tesla’s soft sales in Europe and other markets, though it did not seem to consider the company’s changeover to the new Model Y across its global factories in Q1 2025.

“CEO Elon Musk has scored somewhat of an own goal against Tesla, and we are about to catch a glimpse of how much the company’s sales were hurt in Q1 2025. This is a big opportunity for BYD and if they deliver on the fast-charging promise, this could be the turning point for BYD and the China BEV story globally,” Counterpoint Associate Director Liz Lee stated.

Not the First Forecast

As noted in a CNEV Post report, this is not the first time that Counterpoint has predicted that BYD will overtake Tesla’s BEV sales. Last July, the market researcher expected BYD to overtake Tesla in 2024 to become the world’s top BEV maker. Tesla still beat BYD’s BEV sales at the end of 2024, however, with the American EV maker delivering a total of 1,789,226 vehicles globally versus the Chinese automaker’s 1,764,992 units.

In Q1 2025, however, BYD does seem to have momentum. BYD sold 416,388 passenger BEVs in the first quarter. As per Tesla’s Q1 vehicle delivery and production report, the company was able to deliver a total of 336,681 vehicles in the first quarter of 2025.