Tesla (TSLA): Barclays Reiterates $275 Price Target, Calls Earnings Setup ‘Confusing’

Tesla, Inc. (NASDAQ:TSLA) is one of the AI Stocks on Wall Street’s Radar. On July 17, Barclays reiterated the stock as “Equal Weight with a $275 price target. The firm said it is “confused” ahead of Tesla earnings next week.

Barclays is of the view that Tesla could outperform despite having weak fundamentals, particularly the company’s autonomous vehicle narrative.

“The set-up for Tesla into 2Q EPS is confusing – similar to 1Q. However, net net we see potential 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.

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“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.”

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.

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Disclosure: None.