While Tesla CEO Elon Musk ‘s foray into politics has driven focus on the company in recent months, Piper Sandler sees a different culprit hurting the business: wait times. Analyst Alexander Potter described the angst around Musk’s political activities as likely “overdone” in a note to clients published Monday. Instead, he said the expected decline in deliveries seen in the first quarter can be chalked up to a spike in wait times for the Model Y. “It would be naive to claim that Elon Musk’s behavior is having no impact on demand. All else equal, Musk’s political endeavors are probably a net negative for deliveries,” Potter wrote to clients. “However: we think it’s incorrect when investors and/or journalists point to politics as the primary driver of Tesla’s double-digit y/y delivery declines.” A firm analysis of Tesla.com data shows that supply should be considered the bigger driver of what’s likely to be a miss on deliveries for the first quarter. Specifically, Potter pointed to multiweek shutdowns at factories producing the Model Y as hindering deliveries. Despite that roadblock, Potter said he remains bullish on the stock with new products expected to be unveiled and the robotaxi slated for launch in the coming months. He reiterated his overweight rating and $450 price target, which suggests shares can rally about 62% over the next year. TSLA YTD mountain Tesla in 2025 That would mark a turn for shares, which have tumbled about 31% this year and set a new record weekly losing streak. Shares were down less than 1% on Tuesday following Potter’s call. Meanwhile, to address recent attacks on the brand, the FBI on Monday launched a taskforce focused on threats to Tesla. President Donald Trump also said he would purchase one of the company’s electric vehicles earlier this month in a show of support for Musk, who also runs the U.S. federal government’s controversial initiative aimed at whittling down its spending and workforce. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
