Despite some short-term challenges, Barclays believes that Tesla is “set up well” for long-term share growth.
In a note to clients on Tuesday, analyst Dan Levy stated, “Simply, not only is Tesla set up to be the primary beneficiary of the global EV transition with a significant lead on cost, but it is also the leader in establishing the software-defined vehicle of the future.”
Levy sees the Model 1 and Cybertruck as “key steps forward” in Tesla’s share development possibility, despite recent price reductions and demand limitations imposed by the firm. According to him, these models ought to give Tesla access to the pickup industry and more affordable pricing points.
Overall, we maintain our OW grade and believe Tesla will prevail in the race for EVs around the world, he said. “However, we think that the issue of model concentration must be addressed on its volume growth path.”