Barclays Reiterates Equalweight Rating on Tesla (TSLA)

Barclays analyst Dan Levy reiterated an Equalweight rating and $275.00 price target on Tesla (NASDAQ: TSLA)

The analyst comments "for the stock to outperform. On the one hand, Tesla faces questions on increasingly weaker fundamentals. While we expect 2Q auto margin ex credits to be improved q/q, it will likely remain depressed vs prior years. And amid a soft 1H on 2025 volume, Tesla now is on track for a meaningful volume decline in 2025 (we forecast down 10%). The fundamental set-up is a sharp contrast to the elevated hopes from late 2024: whereas ’25 consensus EPS was over $3.20 into the beginning of the year, it is now down to $1.84. It’s certainly possible that a weak gross margin or broader soft commentary on fundamentals could be a splash of cold water on the stock. Yet at the same time, the earnings call also presents an opportunity for Tesla's robotaxi/AV narrative to shine, which has been front and center of Tesla stock's strength. We could see Elon Musk potentially discussing fleet growth targets or expansion plans. Lastly, Tesla's forthcoming low-cost model seemingly missed its target for 1H25 start-ofproduction. With Tesla likely to focus on a 3Q pre-buy in advance of the Sep 30 expiration of the US EV tax credit, we believe it may delay the launch of the low-cost model to 4Q, which could be perceived negatively."

For an analyst ratings summary and ratings history on Tesla click here. For more ratings news on Tesla click here.

Shares of Tesla closed at $321.67 yesterday.

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