Barclays Raises Tesla Price Target to $325

Barclays analyst Dan Levy raised the price target on Tesla (NASDAQ: TSLA) to $325 (from $270) while maintaining an Equalweight rating.

“we believe fundamentals remain secondary vs. the broader theme of narrative command for Tesla, which has gone into hyperdrive since the US Elections last November.

The stock has become untethered from fundamentals, arguably similar to what we saw with Tesla stock in late 2021 when the market was awash in EV euphoria.

Yet it’s important to note this move has very little to do with EVs, as the Election catalyst is objectively a negative for EVs.

Rather, the AV/AI opportunity has drawn excitement over the large TAM opportunity ahead, with reinvigorated hopes of Tesla’s role as a disruptor – regardless of how distant the opportunity is, or how difficult it will be to monetize (a point we’ve discussed in the past).

Yet beyond this is the “Elon premium” in the stock, which we believe is at an all-time high, especially with Elon Musk’s stature solidifying post the US election.

With Tesla reinforcing itself as the “OG meme stonk,” we think Tesla’s best comp is perhaps Bitcoin, and Elon ‘s star power seems core to that.

We believe fundamentals will eventually return to being important to Tesla investors.

Yet for now it’s unclear to us what the negative catalyst is, with the stock to potentially remain elevated for now. We reaffirm our EW rating and raise our PT to $325, from $270.”

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