Tesla(US:TSLA) Forbesยท2025-02-10 16:49Core Insights - Tesla's public perception is negatively impacted by CEO Elon Musk's political involvement, leading to a decrease in stock price target by Stifel from $492 to $478, while maintaining a buy rating with a 33% upside potential from the current share price of $360 [2][3]. Group 1: Consumer Sentiment and Sales Impact - A recent survey indicates Tesla's net favorability is at 3%, close to its all-time low since the poll's inception in 2018, suggesting a potential headwind to sales due to negative consumer perception of Musk [3][4]. - A CBS News/YouGov survey shows only 23% of Americans believe Musk should have significant influence in the federal government, reflecting increased skepticism about his political role [4]. Group 2: Stock Performance and Market Reaction - Following the Stifel report, Tesla shares fell as much as 3% before settling at a 0.5% loss, marking the lowest share price since December 4, and extending the year-to-date loss to 11% [5]. - Tesla's stock is currently trading 26% below its all-time high set in December, despite a 90% increase over the past year [7]. Group 3: Financial Performance and Valuation Metrics - Tesla experienced its first year-over-year vehicle delivery decline, with deliveries dropping from 1.81 million in 2023 to 1.79 million in 2024, alongside a more than 20% decline in profits [7]. - The company's price-to-earnings ratio stands at approximately 175, significantly higher than the S&P 500 median of 24, indicating a disconnect between stock price and fundamental performance [7]. Group 4: Future Prospects and Strategic Focus - Musk acknowledges a slowdown in Tesla's core electric vehicle business but emphasizes growth potential in areas like artificial intelligence and the Full Self-Driving initiative, which are critical to Tesla's long-term story [9]. - Stifel highlights the importance of Tesla's AI efforts, while Musk envisions a $10 trillion market for the company's Optimus humanoid robots [9].