Barclays analyst Dan Levy has reduced Tesla's (TSLA, Financial) price target from $325 to $275, maintaining a hold rating. Despite this adjustment, the new target is still about 14% higher than Tesla's last closing price of $241.38. Levy expressed concerns over Tesla's upcoming first-quarter earnings report, especially after the company reported a significant 13% year-over-year decline in vehicle deliveries, totaling approximately 337,000 units. This figure also fell short of Wall Street's expectations by about 40,000 vehicles.
Investors are uncertain about the reasons behind the decline, debating whether it stems from CEO Elon Musk's political activities, which have sparked protests at Tesla factories, or the recent changes to the Model Y. Additionally, tariff issues could potentially increase component costs, though the impact is unclear.
Levy also doubts Tesla's ability to increase deliveries by 2025, with projections now at 1.8 million vehicles, down from an earlier estimate of 2.1 million. However, Levy remains optimistic that Musk might focus more on Tesla, which investors view positively. Tesla plans to launch an autonomous taxi service in June and a new affordable model by late 2025, both of which could boost investor sentiment.
