Barclays takes ‘tempered view’ on Tesla shares into earnings

Barclays keeps an Equal Weight rating on Tesla (TSLA) with a $360 price target into the Q1 report. A key question on the earnings call will be how much incremental spending Tesla will need to incur for its physical AI projects, especially Terafab, the analyst tells investors in a research note. Barclays believes Terafab could cost in the mid-single digit trillion dollar range if fully built out. While Tesla’s capex is unlikely to “exponentially increase,” a further step up from the elevated $20B figure Tesla talked to on the last earnings call is likely, contends Barclays. The firm attributes the recent weakness in the shares to little progress being disclosed on Robotaxi and Optimus. The selloff “could imply on the surface an opportunity for the stock to outperform” on the Q1 results, but Barclays takes a “more tempered view into the print,” as commentary of incremental capex “could be perceived negatively,” the analyst notes.

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