Barclays: Tesla, Inc. (TSLA.US) stock price is increasingly disconnected from fundamentals, reiterates "hold" rating.

Barclays released a research report stating that it maintains a "hold" rating on Tesla, Inc. (TSLA.US), with a target price raised from $270 to $325. However, it is worth noting that even with the price increase, the target price is still about 24% lower than Tesla, Inc.'s closing price on Wednesday. Barclays predicts that driven by healthy automotive gross margins, Tesla, Inc.'s performance in the fourth quarter of 2024 will see a modest increase. The bank stated that Tesla, Inc.'s three major themes in 2025 include: resuming sales growth (with the launch of new low-cost models), expanding the autonomous driving/artificial intelligence business, and contributions in other areas (especially regulatory credits and energy storage). Barclays pointed out that since the US presidential election in November last year, Tesla, Inc.'s stock has entered a period of rapid growth. The bank believes that compared to the narratives that have dominated Tesla, Inc.'s stock performance during this period, fundamentals are still secondary, and the stock is increasingly detached from fundamentals. Barclays also believes that Tesla, Inc. still has an "Elon premium", and this premium is at its historical highest level, especially since Elon Musk's position has been strengthened after the US election. The bank stated that it believes fundamentals will eventually become an important factor in investing in Tesla, Inc., but it is currently unclear what the negative catalysts are, and the stock price may remain at high levels for now. However, Barclays stated that the opportunities in autonomous driving/artificial intelligence make people excited about Tesla, Inc.'s huge total addressable market (TAM) in the future and reignite hope for Tesla, Inc. as a disruptor - no matter how distant this opportunity is, or how difficult it is to monetize.