Barclays Slashes Tesla Target to $150 after Musk’s Unconvincing ‘Hyperbull’ Robotaxi Pitch
Elon Musk’s 2020 robotaxi fleet won’t save Tesla from a stagnating Model 3 demand and the lack of a clear path to profitability, warned a Barclays analyst. | Source: REUTERS/Bobby Yip
Barclays argues that demand for Tesla’s products are either declining or stagnating. Specifically, the financial institution has stated that demand for Tesla’s mass-market car, the Model 3, is facing stagnation in the U.S.
Barclays also noted that the firm’s solar storage installations have been recording declines in the last two quarters. Solar installations are done by the electric car maker’s subsidiary, SolarCity.
One million tesla robotaxis by 2020? Barclays thinks not
Analysts at Barclays also poured cold water on Tesla CEO’s ambitions to launch self-driving cars by 2020. Last month, Elon Musk stated that the electric car firm will launch a network of one million robotaxis by 2020.
Barclays analyst Brian Johnson wrote:
While Mr. [Elon] Musk is pivoting to the remaining ‘hyberbull’ full robotaxi scenario, his efforts to spring excitement around Tesla’s full self-driving capabilities was broadly met with the appropriate skepticism.
— Harry Talks Today! (@HarryDouglas) April 24, 2019
While pointing out that Musk’s ‘efforts to spring excitement around Tesla’s full self-driving capabilities was broadly met with the appropriate skepticism’, Barclays has predicted that reality will start to hit investors going forward:
We expect more investors to gravitate back to Tesla’s near-term fundamentals of demand,