Tesla (TSLA) shares are down again on Friday, March 28 due to broader market weakness and after the “Tesla Takedown” movement announced plans of over 200 protests at the automaker’s U.S. locations on Saturday, March 29. 

Tesla has been mired in protests and even incidents of vandalism as CEO Elon Musk’s role in President Donald Trump’s Department of Government Efficiency (DOGE) creates controversy. 

However, Gene Munster, a senior expert at Deepwater Asset Management, expects this prove temporary, and remains bullish on TSLA for the longer term. 

Versus its year-to-date high, Tesla stock is currently down nearly 40%. 

Trump Tariffs Could Prove to be a Boon for Tesla Stock

Munster is keeping a positive view on Tesla as he expects the EV maker to benefit from Trump’s 25% tariffs on imported cars and auto parts. 

The senior analyst expects higher tariffs to raise prices of nearly half the cars sold in the United States (excluding Tesla) by about 7%. 

In comparison, the price of a Tesla will increase by only 2%, he argued in a post on LinkedIn, adding “as a result, Tesla will effectively appear 5.0% cheaper relative to the rest of the new car market” once new levies take effect on April 3. 

Munster continues to expect material weakness in TSLA’s quarterly deliveries, expected early next week, but is convinced that much of the bad news is already baked into the Tesla stock price. 

Deutsche Bank Sees Upside in TSLA to $345

Deepwater’s expert sees tariffs improving Tesla’s auto volumes by about 1.5%. He recommends buying TSLA stock on the weakness also because it’s much more than an average EV stock now. 

Munster is bullish on the firm’s robotaxi initiative and its humanoid robot project (Optimus), which he believes will help unlock significant further upside in its share price in 2025. 

Munster’s view, particularly on what higher tariffs may mean for Tesla stock, was also echoed by Deutsche Bank analyst Edison Yu in a new research note. 

Yu continues to see upside in TSLA shares to $345, estimating “very minimal impact” from new levies. 

Tesla saw its net income decline by an alarming 53% in 2024. However, despite challenges, Wall Street expects it to grow its earnings by well over 17% this year, further adding to the optimism surrounding the EV stock.