Political Anger at Musk, TSLA Likely to “Fade” Over Longer Term, Well-Known Analyst Says

Speaking on CNBC yesterday, before Tesla (TSLA) announced lower-than-expected deliveries for the first quarter today, Deepwater analyst Gene Munter predicted that anger over Elon Musk’s political stances would probably “fade” in the medium-to-long term.

The well-known analyst predicted that Tesla’s delivery data would steadily improve as the year goes on.

“Fatigue” Will Help TSLA, Munster Says

“People will get fatigued about the Musk political narrative…The company’s public brand issues will fade as people move on and start talking about other things,” Munster predicted.

TSLA Delivery Data to Rebound in Rest of 2025, EPS to Surge Next Year

In Q2, Tesla’s deliveries will fall 10% to 12% year-over-year, before retreating 5% YOY in Q3 and increasing “a few percent” in Q4, Munster believes.

As far as earnings per share, Munster expects the company to generate $2 to $2.20 of EPS this year and $3 to $3.40 in 2026.

 TSLA Will Shine Over the Long Term, Munster Says

Like most TSLA bulls, Munster believes that the company’s innovations in robotaxis and robotics will ultimately boost TSLA stock.

Calling 2025 “a throwaway, transition year” for the firm, Munster said that investing in TSLA stock is “ultimately about physical AI.”

While we acknowledge the potential of TSLA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.