Global financial institution Barclays has slashed Tesla’s (TSLA) stock price target from $325 to $275. The bank cites weak fundamentals for its sudden decision. Barclays analyst Dan Levy maintained an equal weight rating for the stock but lowered its price target. Levy’s action comes after a review of TSLA’s Q1 performance. The analyst and his team anticipate a dip in TSLA’s price, propelled by a dip in vehicle production volume and production inefficiencies.
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Bad Rep For The EV Manufacturer?
BNP Paribas Exane analysts have also expressed concern regarding TLSA’s performance. The financial institution has reduced its price target for the stock to $137 from $150. The firm has maintained its “Underperform” rating for the EV manufacturer. The firm believes Tesla could face potential risks from China, along with negative free cash flow.
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Piper Sandler also shares a similar outlook for Tesla. The firm lowered its price target to $400 from $450. Piper Sandler has maintained its “Overweight” rating for the company. The firm cites disappointing delivery numbers for its revision. Piper Sandler also anticipates low gross margins.
Can Tesla’s Price Still Rally?
Despite a lackluster outlook and a price target cut, Levy says TSLA could still experience a rally due to a better narrative. CEO Elon Musk has been more engaged with the electric vehicle company. The Full Self-Driving (FSD) event could lead to a surge in investor confidence.
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Tesla is also on the brink of entering a completely new Market, India. The most populous country recently changed its laws for electric vehicle imports after President Trump’s recent tariff spree. The EV manufacturer may witness substantial success in the subcontinent. With access to one of the largest markets in the world, Tesla could see a sudden rise in sales numbers.
