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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 RadarOn 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.

Katherine Welles / Shutterstock.com

“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.

While we acknowledge the risk and potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 AI Stocks Gaining Attention on Wall Street and 10 AI Stocks Investors Are Watching Closely.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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