Barclays reports that Tesla (TSLA, Financials) is losing investor interest to its electric car business as emphasis switches to artificial intelligence and future development.
The business expects Tesla to deliver 350,000 cars in the first quarter, below the average of 375,000. Due to lower demand in key nations like China and the termination of EV tax advantages in the US, demand is projected to plummet.
Barclays stated that Tesla’s valuation no longer depends on car industry fundamentals like volume and margins. Instead, investors are looking for turning points in AI, humanoid robotics, and robotaxis.
Lower sales and greater raw material prices may potentially strain margins. However, pricing increases and regional mix may assist.
Even if the story has altered, Barclays underlined Tesla’s automobile business is still vital. This is especially important considering the company plans to spend $20 billion on capital projects in 2026.
First-quarter deliveries and Tesla’s long-term expansion ambitions beyond electric vehicles will influence the market next.
