Tesla’s stock price target was recently cut by Barclays, dropping 15% to $275 from $325. The analysts at Barclays pointed to weaker fundamentals and challenges in achieving 2025 unit volume growth as the reasons behind the price target reduction. Despite this revision, Barclays maintained an equal weight rating on TSLA, noting that CEO Elon Musk could potentially shift sentiment during the upcoming Q1 earnings call.
Barclays also highlighted Musk’s upcoming discussion on Tesla’s robotaxi launch in June, suggesting that a positive narrative could overshadow any short-term issues. However, the investment bank expressed concerns over Musk’s involvement with the Trump Administration, referring to it as a “code red situation” for Tesla.
The perception of the Tesla brand has been impacted by Musk’s ties to the U.S. government, with some investment firms viewing it as a negative. Wedbush Securities’ Dan Ives advised Musk to prioritize his CEO role over government involvement and urged him to address his role in the Trump Administration during the earnings call. Ives emphasized the importance of laying out hard facts regarding autonomous vehicles, robotics, and production of Tesla’s new lower-cost vehicle.
Despite the challenges facing Tesla, Benchmark analyst Mickey Legg believes that current concerns are exaggerated considering the company’s future prospects. Legg argued that the recent stock pullback and sales declines, while significant, are overblown when considering the opportunities on the horizon. He encouraged investors to focus on catalysts like robotaxis and new vehicle models as Tesla’s earnings approach.
As Tesla navigates through these challenges, Musk’s leadership and strategic clarity will be crucial in addressing investor concerns and shaping the company’s trajectory. The upcoming Q1 earnings call will be a pivotal moment for Musk, Tesla, and investors as they determine the future direction of the company.