Barclays raises Tesla’s price target to $370 estimating 251k vehicles in Q2

Written by Cláudio Afonso | | LinkedIn | Twitter

Barclays analyst Brian Johnson raised on Friday the firm’s price target on Tesla to $370 from $325 while reiteraterating an underweight rating on the shares. The analyst says that Tesla’s Q2 production and margins are set to disappoint as Shanghai “shackles output” estimating now 251,000 units from 315,000 prior (below the 303,000 consensus).

Johnson believes that the ramping up to pre-lockdown levels in China will take longer than expected plus a slower ramping from Tesla’s new GigaFactories in Texas and in Berlin, Germany. The analyst also reduced his second quarter earnings per share (EPS) estimate to $2.08 from $2.72.

On Thursday, UBS analyst Patrick Hummel upgraded Tesla stock to Buy from Neutral with an unchanged price target of $1,100. The analyst believes that the company’s outlook is “stronger than ever before” due to three main reasons: the two new gigafactories ramping up, a great margin, and the structure to deal with supply chain issues.

Earlier this week, Tesla showed the most recent Cybertruck prototype at an event with the prodution expected to start in 2023. Reacting to a tweet from a Tesla enthusiast, Elon Musk commented: “It [Cybertruck] will be our best product ever imo”. Also some pictures from the interior were revealed regarding the appearance in Moss Landing, Clalifornia.

On Saturday, Tesla’s CEO Elon Musk unveiled that the 10.13 version of the Full Self Driving technology “is a big deal” and that “should be able to drive to a GPS point with zero map data”.

In the same tweet, Musk also confirmed that the 10.12.2 version of the beta program is now expanding to 100k cars. The U.S. automaker is ramping up the number of beta testers after having only a few thousand people in the third quarter of 2021.

Written by Cláudio Afonso | | LinkedIn | Twitter