Barclays starting to sees cracks in Tesla bulls' 'pillars of faith' - InvestingChannel

Barclays starting to sees cracks in Tesla bulls’ ‘pillars of faith’

Barclays analyst Brian Johnson believes the “pillars of faith” that Tesla (TSLA) bulls “hold dear” are starting to show some cracks. Volkswagen’s (VLKAY) recent color on improving battery prices shows that even if Tesla maintains a lead in battery prices, that lead is narrowing, John tells investors in a research note titled “Challenging the blue pill pillars of faith.” Further, he believes the Waymo/Jaguar partnership, combined with safety concerns post the recent Uber accident and fatal Tesla crash, reinforces that “Tesla is behind in autonomous driving.” In addition, Model 3 production missteps, combined with increased competition, make it tougher for Tesla to become a market share leader in auto, the analyst adds. Further, Johnson thinks “weak execution” in auto, combined with little progress in autonomous and losses in Tesla Energy, make a “tough case for success in ancillary businesses.” The analyst thinks any near-term relief rally in Tesla shares would be unsustainable. He keeps an Underweight rating on Tesla with a $210 price target. The stock in early trading is down 3%, or $6.87, to $250.91.