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On Friday, Barclays (LON:BARC) analyst Dan Levy maintained an Equalweight rating on Tesla stock (NASDAQ:TSLA), currently trading at $236.26, with a consistent price target of $325.00. The $759.93 billion market cap automaker, which generated $97.69 billion in revenue last year, faces scrutiny as Levy’s assessment is based on the latest vehicle delivery data from January and February, along with early March indicators. He estimates that Tesla’s first-quarter deliveries will be around 350,000 units, which aligns with Barclays’ preliminary estimate issued last week. This figure falls short of the consensus estimate of approximately 400,000 units and is also below Barclays’ own forecast published after Tesla’s fourth-quarter earnings report in January. According to InvestingPro, 10 analysts have recently revised their earnings estimates downward for the upcoming period, while the stock has declined 41.5% year-to-date.
Levy pointed out that the anticipated delivery numbers represent a significant decline from previous periods, with a roughly 30% sequential drop and a 10% year-over-year decrease. The analysis suggests that investor expectations have adjusted to these lower delivery numbers due to subdued data points observed throughout the quarter. Want deeper insights? InvestingPro offers exclusive analysis and 18 additional key insights for Tesla, available in the comprehensive Pro Research Report.
The Barclays analyst also expects Tesla to reduce its inventory by about 20,000 units. This drawdown is attributed to decreased production in China meant for exports, resulting in fewer vehicles in transit, and a reduction in global production during the ramp-up of the Model Y Juniper. According to Levy, these adjustments could bring Tesla’s global inventory levels to between 70,000 and 80,000 units. Investors can track Tesla’s next earnings release, scheduled for April 29, 2025, for further clarity on these developments.
In other recent news, Tesla has been at the forefront of several significant developments. Morgan Stanley (NYSE:MS) recently adjusted Tesla’s stock price target from $430 to $410, maintaining an Overweight rating. This revision reflects lowered projections for Tesla’s vehicle deliveries, influenced by increased competition and an aging product lineup. Tesla’s sales data showed notable declines in January and February, although there were signs of recovery in China by March. In terms of innovation, Tesla plans to introduce a new battery manufacturing technique for its Cybertruck, which could save the company over $1 billion annually. This involves the use of dry cathodes, aiming to reduce costs and improve efficiency. Meanwhile, at Tesla’s German plant, around 3,000 employees have signed a union petition requesting longer breaks and additional staff, highlighting ongoing labor tensions. Tesla responded by converting 300 temporary jobs to permanent positions to support increased production of the Model Y. Lastly, Elon Musk has initiated legal action against the Indian government over content regulation on X, formerly known as Twitter, challenging the use of the IT Act for content censorship.
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