Apr. 13, 2025, 04:25 PM Tesla (NASDAQ:TSLA) shares have taken a sharp hit, plunging 47% since their post-election peak in December. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Many market watchers argue that CEO Elon Musk’s political ventures have dented the brand’s image and spooked investors. However, Benchmark analyst Mickey Legg thinks recent woes are nothing to be overly concerned about. “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,” Legg said. The analyst includes “political blowback” among the factors that have badly affected Tesla in Q1, but there are other, more benign explanations. Legg puts growing global competition, an aging vehicle lineup, the anticipation of new products, uncertainty on the regulatory front and tariffs, as the other reasons adversely affecting the EV leader. According to the rumor mill, soon Musk’s role in the new administration won’t be quite as prominent, so Legg thinks that as the year progresses, the political backlash could fade. “In our view there is significant potential for a stock rebound,” Legg goes on to say, claiming the headwinds will be dwarfed by the upcoming catalysts. Among these catalysts is the release of a new model in Q2 2025 – an event Legg believes could revive sagging sales. Then there’s Tesla’s much-anticipated robotaxi service, set to debut in Austin this June. While the launch may be modest in scope, Legg is watching closely to see how quickly the rollout scales both in Austin and beyond. And the long game? That’s where Tesla’s Optimus robotics project could rewrite the playbook. Legg sees it as a potential “game changer,” as it could mark its transformation from a car maker to a “broad automation provider.” Finally, Legg points out that Tesla is well-positioned to sidestep some of the pain from new auto tariffs, since its North American production is concentrated in California and Texas. “Long-term we believe autonomy and robotics will drive business growth and result in stock appreciation,” he further said. While there’s no doubt Legg is a TSLA bull club member, to account for the “recent market sentiment following the tariff announcements,” he has lowered his price target from $475 to $350, although the new figure still offers a 12-month upside of ~39%. Legg’s rating stays a Buy while he has also added Tesla to the Benchmark Best Ideas list. (To watch Legg’s track record, click here) Overall, Tesla gets the support of 15 other analysts on Wall Street, yet with an additional 11 Sells and Holds, each, the stock only claims a Hold (i.e., Neutral) consensus rating. That said, going by the $305.93 average price target, the shares will deliver returns of 21% a year from now. (See TSLA stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.