Tesla Stock: 4 Experts Argue Pros and Cons of ‘Buying the Dip’ Amid Trump Tariff Drama
Written by
John Csiszar
Edited by
Amber Barkley
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If you’ve watched the news over the past few months, you might have come to believe that Elon Musk, the CEO of Tesla, was essentially President Donald Trump’s “right-hand man.” Trump put Musk in charge of the newly created Department of Government Efficiency (DOGE), and Musk used the platform seemingly every day to cut costs — and jobs — from the government.
But the tide has turned as of late, with Trump unleashing sweeping tariffs on imports from nearly every country in the world. And while Tesla remains a brand made in the U.S., it imports a large number of its parts.
As Musk himself posted on X in response to the tariffs, “Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant.”
In fact, some analysts put the hit to Tesla earnings at as much as $3 billion, according to Barron’s — a huge amount for a company expected to earn $8.3 billion in 2025. With the stock already down over 38% on a year-to-date basis, is it time to “buy the dip,” or not? Here’s what analysts have to say.
Next, find out what your Tesla investment would be worth if you’d bought in when Musk took over.
Dan Ives, Wedbush
On April 7, Dan Ives of Wedbush “threw in the towel” on Tesla after staunchly supporting the stock historically, according to Barron’s. Ives said the double-whammy of Musk’s focus on Washington instead of Tesla and the Trump administration’s tariffs have caused him to change his view.
While still a believer in Tesla, with a “buy” rating, Ives dropped his price target to $315 from $550, a significant shift in sentiment. According to Ives, while not being directly affected by the import tariffs, as an American auto brand, Tesla will pay the price for all of the parts it imports from China.
Andres Sheppard, Cantor Fitzgerald
On March 19, Andres Sheppard of Cantor Fitzgerald jumped in to reiterate his “overweight” rating on Tesla, with a $425 price target.
Sheppard feels that the tariffs might actually work to Tesla’s advantage, as it has a competitive edge over foreign-based automakers when it comes to production and parts. The “polarizing politics” that have hurt the company in Q1 should subside, according to Sheppard.
Joseph Spak, UBS
When Tesla reported Q1 deliveries were far below expectation, most Wall Street analysts were caught off guard and began lowering their price targets. Joseph Spak at UBS, however, was one of the few analysts expecting bad things out of Tesla.
On April 3, according to Investing.com, the analyst reiterated his “sell” rating — a very rare occurrence on Wall Street — and kept his price target at $225. Spak anticipates negative revisions for Tesla throughout 2025 and possibly beyond, reflecting his bearish stance.
Cathie Wood, Ark Investments
Perhaps the biggest bull on Tesla is Cathie Wood, CEO of Ark Investments. In a March 24 interview with Bloomberg, Wood said she sees Tesla hitting $2,600 in five years. That’s a price target more than 11x the current level of Tesla shares.
According to Wood, the company’s robo-taxis will amount to more than 90% of the value of the company by that time. Along the way, the company will transform from an auto company to a software company, and its margins will expand from 16% to 90%. In other words, Wood sees the company firing on all cylinders and turning itself into essentially a brand-new company within five years.
Analyst Consensus
Unlike many stocks, there is anything but a “consensus outlook” on Tesla. Here are the ratings 48 analysts currently have on Tesla, reported by Yahoo Finance:
- Strong buy: 7
- Buy: 16
- Hold: 14
- Underperform: 9
- Sell: 2
Meanwhile, one-year price targets run from $120 to $550, an extraordinarily wide range.
The Bottom Line
It shouldn’t be a surprise that opinions on Tesla stock are all over the map, even in the analyst community. The wide range of analyst opinions and price targets on the stock show that there is plenty of room for interpretation as to just what type of company Tesla really is and what it may become.
If Wood’s bullish projections that Tesla will become the dominant force in a future world of AI and autonomous vehicles prove accurate, her $2,600 price target may be too low. But if consumers continue to sour on Tesla’s products and deliveries continue to plummet, the company may not have enough capital to fund all of its great ideas.
While the tariff turmoil of 2025 will no doubt affect Tesla over the short term, there’s a real question about which direction the company is heading in the long run, as well. But with uncertainty can also come opportunity. Sentiment has soured so much on Tesla that progress in any area is likely to give the stock a pop.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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