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Barclays cuts Tesla price target, questions Musk’s White House role

Barclays cuts Tesla price target and warns that Elon Musk’s Trump ties are a “code red” for the TSLA’s brand. 

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(Credit: Tesla Europe & Middle East/X)

Tesla’s (NASDAQ:TSLA) stock price target was slashed 15% by Barclays to $275 from $325. Barclays analysts cited weaker fundamentals and challenges in achieving 2025 unit volume growth as reasons for cutting Tesla’s price target. The firm retained an equal weight rating on TSLA, noting that CEO Elon Musk could shift sentiment during the upcoming Q1 earnings call.

Barclays believes Musk’s discussion of Tesla’s robotaxi launch in June could overshadow short-term issues, stating, “good narrative could outweigh weak fundamentals.” The investment bank also commented that Musk’s work with the Trump Administration has become a “code red situation” for Tesla.

Musk’s involvement with President Trump and his administration has caused some waves in the perception of the Tesla brand. Other investment firms also see Musk’s work with the U.S. government as negative for Tesla.

Wedbush Securities’ Dan Ives urged Musk to prioritize his CEO role over government involvement. “We also would expect Musk to address his role in the Trump Administration and will be asked about if he plans to stay in an advisory role for the White House,” Ives said. The Wedbush analyst emphasized that Musk must “lay out the timeline/hard facts” for autonomous vehicles, robotics, and production on Tesla’s “new lower-cost vehicle.”

“We view this as a fork in the road time: if Musk leaves the White House, there will be permanent brand damage… But Tesla will have its most important asset and strategic thinker back as full-time CEO to drive the vision, and the long-term story will not be altered. If Musk chooses to stay with the Trump White House, it could change the future of Tesla, and brand damage will grow. A huge week ahead for Musk, Tesla, and investors,” Ives wrote in a note.

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Tesla’s stock has faced pressure from Musk’s government ties, tariffs, and lower-than-expected deliveries. However, Benchmark analyst Mickey Legg countered the pessimism, arguing that current concerns over Tesla are exaggerated given the company’s future prospects.

“We believe the recent stock pullback and sales declines, while significant, are overblown considering the near-term issues impacting the company and the scope of opportunities around the corner. After appreciating over 90% to a high of $488 after the Presidential election, the stock has pulled back to sub-$300 levels,” Legg wrote in a note earlier this month.

The Benchmark analyst urged investors to focus on catalysts like robotaxis and new vehicle models. As Tesla’s earnings approach, Musk’s leadership and strategic clarity will be pivotal in addressing investor concerns and shaping the company’s trajectory.

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Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Elon Musk

The Boring Company paves the way for Tesla robotaxi future

The Boring Company breakthrough boosts Tesla’s robotaxi dream. Autonomous Cybercabs may soon zip through tunnels, solving gridlock for good.

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(Credit: The Boring Company

Earlier this week, The Boring Company (TBC) announced that it has continuously mined in a Zero-People-in-Tunnel (ZPIT) configuration. A Tesla executive responded to TBC’s latest milestone and explained how Elon Musk’s tunneling company will create Tesla’s robotaxi future.

The Boring Company shared videos of its ZPIT configuration and explained why this is a huge milestone.

“In the same way that full rapit reusability is the holy grail for rockets, ZPIT continuous mining is the holy grail for Boring Machines. This is the safest, fastest, and least expensive architecture to build tunnels,” TBC clarified.

Tesla vehicles with human drivers are currently used in The Boring Company’s Las Vegas tunnels to transport people. The Tesla Cybercab would significantly impact the functionality of TBC’s tunnels. Tesla’s VP of AI Software, Ashok Elluswamy, explained how The Boring Company would help create Tesla’s vision for robotaxis.

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“Will need this big time in the future,” Elluswamy said, referring to The Boring Company’s announcement about reaching ZPIT configuration.

“With autonomous vehicles, we’ll have affordable premium transport for everyone. This will likely increase traffic due to the increased usage, even though each vehicle is much more efficiently utilized,” he elaborated.

The Boring Company’s main missions are to solve traffic and provide rapid point-to-point transport. Elon Musk believes the solution to traffic is 3D road designs, which include tunnels that act like a wormhole or warp tunnel.

TBC’s Las Vegas Convention Center tunnel network showcases Musk’s idea of 3D road designs and how fast it can transport people. The Vegas Loop in Las Vegas is also expanding and will support The Boring Company’s mission.

The Boring Company is close to beating Gary the Snail’s tunneling speed with its Prufrock boring machine–another big milestone. According to TBC, the latest iteration of Prufrock can start tunneling within 48 hours of arriving at a site and dig over 1 mile per week. Prufrock’s next goal is to beat 1/10th of a human walking speed or 7 miles per day.

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Tesla is preparing to launch robotaxi services in Texas this summer. As Elon Musk’s electric vehicle company ramps up robotaxi services, his tunneling company will ensure the roads are clear of mind-numbing traffic.

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Elon Musk

Tesla seems to have fixed one of Full Self-Driving’s most annoying features

Tesla seems to have resolved an issue that many users of the Full Self-Driving suite complained about recently.

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Tesla's Cabin-facing camera is used to monitor driver attentiveness. (Credit: Andy Slye/YouTube)

Tesla seems to have listened to drivers and owners who complained about a very annoying feature that monitors the eyes of the vehicle operator while using the Full Self-Driving suite.

Earlier this month, owners complained that versions of Full Self-Driving Supervised were too quick to alert drivers of their eyes going off the road, which is required for operation.

Tesla to fix an FSD driver monitoring annoyance, Elon Musk hints

If you’re doing something as simple as adjusting HVAC settings or changing Autopilot speed offset, the cabin-facing camera would alert the driver that their eyes need to be on the road.

It was incredibly quick to warn you, and many argued that changing these features while the vehicle is using FSD is safer than doing it while operating the car manually.

After several complaints, Tesla CEO Elon Musk said he agreed with the fact that FSD would warn drivers so quickly. When a user on X noted that “I can’t even glance at the display to add a nav stop without getting yelled at” and stated it was what they hated most about FSD, Musk replied, “You’re right.”

Tesla is now rolling out a new update of the FSD suite with v13.2.9, which includes various improvements. One of which appears to be a less dramatic driver monitoring system, which includes perhaps a slightly longer grace period before it will alert you to look at the road.

Several owners are reporting they’ve noticed a change, with it being less restrictive than previously:

Driver monitoring is very important, considering people do abuse FSD and its capabilities. It is important to pay attention, even if you are overwhelmingly confident in the abilities of FSD, because, in the event of an accident, Tesla will be the one to take the bad publicity for it.

This is even if the driver is found liable for the accident.

However, from personal experience, the alerts it gave were slightly dramatic, and I felt that they were over the top. I was admonished by the driver monitoring system for simply adjusting the Autopilot speed offset.

Many owners welcome this change. FSD is being refined with every update, becoming more robust, accurate, and less naggy with its requests.

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Tesla’s Elon Musk clarifies shocking Optimus fact

Musk clarified that while Optimus is already impressive today, it is still very far from its planned final form.

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Credit: Tesla Optimus/X

This week has been a tour de force of Tesla Optimus demonstrations. But even with the humanoid robot’s already impressive capabilities, CEO Elon Musk dropped a comment that truly made Optimus even more exciting. 

Inasmuch as Optimus today is likely one of the most advanced humanoid robots in the industry, it is still nothing close to what Tesla really wants to create.

Optimus Demonstrations

Optimus’ demonstrations this week caught headlines because they showed the humanoid robot performing impressive dance moves. Initially, a video posted by Elon Musk on social media platform X showed Optimus dancing while being tethered to a cable. A follow up video upped the ante, with Optimus performing actual ballet moves without any support.

Comments from Tesla Vice President of Optimus (Tesla Bot) Milan Kovac revealed that the humanoid robot’s movements were fully learned in simulation and zero-shot transferred to real without extra training. Elon Musk later joked that he would be accompanied by a troupe of dancing Optimus robots at the 2024 Tesla Annual Shareholder Meeting.

Not Even Close

But in another follow-up comment on X, Musk clarified that while Optimus is already impressive today, it is still very far from its planned final form. This was quite surprising as the humanoid robot is already in initial production at the Fremont Factory. Even in its current state, Optimus also looks production-ready. Elon Musk even noted that Optimus robots are just walking around Tesla’s factories today around the clock, charging themselves as needed.

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Credit: @heydave7/X

With this in mind, one could wonder what Optimus’ final form could really be like. While the humanoid robot’s current iteration is already pretty sleek, perhaps Tesla is still developing Optimus until its appearance could mirror the robot’s static display model that the company showed off back in 2021. That Optimus model featured very human proportions and joints, making it look more like an android from a sci-fi flick than a humanoid robot with obvious mechanical parts.

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