11:18 AM EDT, 06/06/2025 (MT Newswires) -- Tesla (TSLA) is facing a challenging period, with investors expected to be "less forgiving" of product delays following the recent public falling out between Chief Executive Elon Musk and President Donald Trump, Oppenheimer said in a note Friday.

Concerns also persist around Tesla's photon counting cameras for autonomous driving, as analysts reiterated their "reservations about this approach performing consistently in difficult driving conditions," according to the note. With the imminent launch of Tesla's autonomous fleet, autonomy performance is seen as the key to stock performance, Oppenheimer said.

The investment firm lowered its financial outlook for 2025 and 2026, given that deliveries from China and in Europe are tracking lower, and electric vehicle support is poised to be removed from the US budget.

Oppenheimer cut its vehicle deliveries projections to 1.63 million from 1.67 million for 2025 and 1.81 million from 1.85 million for 2026. Adjusted earnings and revenue estimates were also reduced.

"We believe the combination of brand damage and increased competition will weigh on results over the next few years," Oppenheimer said.

Oppenheimer has a perform rating on Tesla.

Shares of the company were up 3.7% in recent trading Friday.

Price: 295.18, Change: +10.48, Percent Change: +3.68