From Yahoo Finance: 2025-04-21 11:42:00

Barclays warns that Tesla CEO Elon Musk’s involvement in the Trump administration is creating a “code red situation” for the automaker. The bank has slashed its price target on TSLA to $275 from $325, citing deteriorating fundamentals and a tough outlook for selling more vehicles in 2025.

Analyst Dan Ives advises Musk to step down from the Trump administration and focus on providing concrete details about Tesla’s robotaxi launch. Ives believes that even if Musk resigns now, there will be permanent brand damage, but the company’s long-term story will remain intact.

In contrast to the potential of TSLA, some analysts believe that AI stocks offer greater promise for higher returns within a shorter timeframe. They point to an AI stock that has risen since the beginning of 2025, outperforming popular AI stocks that have declined by around 25%. For those interested in exploring AI stocks, a report on the cheapest AI stock is available.

Barclays and Ives continue to offer differing perspectives on Tesla’s future, highlighting the complexities and challenges facing the company amidst changing market dynamics and technological advancements. The debate over Musk’s role in the Trump administration and the impact on Tesla’s brand and performance remains a key point of contention among analysts.

Read more: TSLA Is Facing a “Code Red Situation,” Bank Warns