Tesla(US:TSLA) Finboldยท2025-03-07 11:36Core Viewpoint - Elon Musk's influence over regulatory agencies has raised concerns, especially given the numerous investigations and lawsuits involving him and his companies [1][6][18]. Group 1: Tesla Stock Performance - Tesla's stock price has seen a significant decline, dropping 45.33% from a high of $479.86 on December 17, 2024, to $262.32 at the time of reporting, creating a potential "buy the dip" opportunity [4][6]. - Analysts remain optimistic about Tesla's stock, predicting a rally in the next 12 months, with even pessimistic targets set above the current price [6][9]. - Despite negative sales trends, including a 45% drop in EU sales and declining figures in China, Tesla is expected to gain market share in emerging markets like India [9][10]. Group 2: Regulatory Environment and Business Strategy - The Trump administration's deregulation agenda, coupled with Musk's efforts to dismantle federal agencies, may allow Tesla to expedite product rollouts, such as 'full self-driving' technology [6][7]. - Incremental investment strategies, like dollar-cost averaging, are recommended for investors looking to buy Tesla shares during the current downward trend [8]. - Musk's recent meeting with Indian Prime Minister Narendra Modi could lead to a new manufacturing plant in India, although skepticism remains regarding the feasibility of such plans [10][19]. Group 3: Future Outlook and Risks - The upcoming earnings report for Tesla, expected on April 22, 2025, could trigger a significant stock rally, as the results may not be as negative as anticipated [13][14]. - Despite the potential for recovery, concerns persist regarding Tesla's reputation and ability to deliver on promises, with 2026 being highlighted as a critical year for the stock [15][21]. - The geopolitical landscape, including U.S.-EU relations and competition from Chinese EV makers, poses additional risks to Tesla's market position [20][22].