Barclays Maintains ‘Equalweight’ Rating on Tesla

Barclays analyst Dan Levy reiterated on July 24, 2025, an ‘Equalweight’ rating and $275 price target on Tesla.

“On one hand, Elon Musk reiterated that Tesla’s future is far beyond the automotive business, with efforts in AI paving the opportunity for Tesla to be the most valuable company in the world.

Elon reminded us that Tesla is the clear global leader in real-world AI driven by efforts in Robotaxi and Optimus, with Tesla a clear leader in “intelligence density.”

Elon is working on a new “master plan,” articulating the transition from a pre-autonomy to post-autonomy world.

Moreover, the potential exists for Tesla to “link arms” with xAI, reinforcing Tesla’s efforts in AI.

Alongside comments of expansion in Robotaxi, we believe the narrative remains intact.

Yet while the AI narrative remains intact for Tesla, the call reminded us that fundamentals remain choppy, and are likely to deteriorate in the coming quarters.

With the expiration of the US EV tax credit at the end of 3Q, Elon Musk noted there could be a few “rough quarters.”

Moreover, Tesla also talked to reduced regulatory credit sales related to modified emissions standards.

The impact of tariffs will magnify.

And lastly, while the new low-cost model was effectively pushed to 4Q, we still see likelihood that it is a decontented Model Y…begging the question of how much incremental demand it will spur.”

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