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Barclays Still Not Impressed With Tesla Inc (TSLA)

Despite Tesla Inc (NASDAQ:TSLA)‘s better than expected delivery numbers for the first quarter, some on Wall Street are still not that impressed with Tesla Inc (NASDAQ:TSLA). Count Brian Johnson of Barclays as one of the doubters, as the analyst recently reiterated his $165 price target and ‘Underweight’ rating. In particular, Johnson thinks Tesla’s recent strong price action is disconnected with the company’s fundamental realities, including the strong likelihood of substantial electric vehicle and electric storage competition in the future. Johnson also thinks that investors are looking at Tesla through a very optimistic point of view that might not pan out, especially given Tesla’s rather steep valuation. There is no guarantee that Tesla’s head-start in autonomous driving/battery packs will translate into meaningful profits down the road to back up the stock price. To be fair, however, there doesn’t seem to be any near term data point catalysts that might blunt the momentum, unless sentiment changes.

What Does The Smart Money Sentiment Say?

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

Elon Musk’s company is a bit of a battle ground stock for the smart money. On one hand, 38 top funds had a bullish position in Tesla Inc (NASDAQ:TSLA) at the end of December, up 4 funds from the previous quarter. On the other hand, around 24% of the company’s float is still short.

The Bottom Line

Despite Tesla Inc (NASDAQ:TSLA)’s strong price action in recent sessions, some Wall Street analysts are still in the bearish camp. In the mean time, Tesla shares have been on a roll, rallying 38% year-to-date. For more reading, check out ‘8 Countries That Produce The Most Hydroelectric Power In the World‘.


Tesla Motors Inc (NASDAQ:TSLA), Car, Showroom, Customer, Logo, Automotive, Brand, Shop, Sales, Building,

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