Barclays sees widening ‘gulf’ between Tesla shares and fundamentals

Barclays says Tesla’s (TSLA) Q2 earnings came in-line with estimates, highlighted by strong gross margins, but its near-term fundamentals are weakened on tax credit expirations, tariffs, and reduced regulation credit sales. The “gulf” between the stock’s narrative and the company’s fundamentals has further widened, the analyst tells investors in a research note. Barclays believes Tesla shares are “increasingly disconnected from fundamentals.” While the company’s artificial intelligence narrative remains, the earnings call reminded investors that Tesla’s fundamentals “remain choppy” and are likely to deteriorate in the coming quarters, contends Barclays. It keeps an Equal Weight rating on the shares with a $275 price target