Barclays analysts have increased their price target for Tesla stock to $350 from $275, maintaining an Equal Weight rating. The upgrade highlights Tesla's advantage from recent tariff changes on U.S. production. This comes as the company approaches its Q3 earnings with mixed narratives on AI growth and fundamentals.
On October 17, Barclays reiterated its "Equal Weight" rating on Tesla, Inc. (NASDAQ:TSLA) while lifting the price target from $275 to $350. The firm identified Tesla as a key beneficiary of tariff relief on U.S. production, noting that 100% of its vehicles sold in the U.S. are manufactured domestically.
"Tesla: Key beneficiary of tariff relief on U.S. production as 100% of vehicles sold in the U.S. are made in the U.S.," the analysts stated.
Tesla enters its Q3 earnings with contrasting dynamics. On one hand, there's an accelerating narrative around autonomous driving and AI, bolstered by Elon Musk's proposed compensation package. On the other, fundamentals appear weakening amid broader market pressures.
Barclays expects a Q3 earnings per share (EPS) beat, supported by strong gross margins and vehicle volumes. However, the firm is approaching the earnings report with a "leaning neutral to slightly negative" outlook. This caution stems from a recent stock rally, which has been driven by a somewhat muted assessment of the company's underlying fundamentals.
Tesla operates as an automotive and clean energy company, integrating advanced artificial intelligence into its autonomous driving technology and robotics initiatives. The stock is currently in focus as one of the AI stocks highlighted by Wall Street this week.