Portfolio Watch: Barclays Downgrades Tesla Ahead of Q2 Earnings | June 21, 2023

Ahead of the forthcoming Q2 earnings, #Tesla #has seen a downgrade from Overweight to Equal Weight by Barclays. This adjustment is made in anticipation of a potential deceleration in Tesla's remarkable 2023 stock rally. It's suggested that now may be an opportune moment for investors to cash in on gains, especially given the recent AI-themed rally and excitement around Tesla's Supercharger network. It should be noted, though, that calling the top of any market surge is always fraught with risk.

Looking beyond immediate fluctuations, Tesla remains well-positioned to lead amongst original equipment manufacturers in the transition towards an electric vehicle-centric world. Renewed investor interest is expected to be kindled towards the end of 2024 and into 2025, as Tesla intensifies the production of its affordable Model 2, designed for the mass market. Meanwhile, a price target of $260 has been assigned to Tesla shares by Barclays, which have recently seen a premarket rise of 1.33% to $278.09. It's also worth keeping an eye on potential concerns around discounting and profit margins that may surface in the upcoming Q2 and Q3 earnings reports, which could affect the pace of Tesla's stock rally. #TSLA #MarketUpdate #News