Tesla share weakness not just based on Chinese tariffs, says Barclays
While some press accounts blame the latest round of Chinese tariffs as the reason for Tesla's 5% selloff yesterday, the weakness is also due to a growing realization among institutional investors that the company is "not poised to grow into a large profitable automaker," Barclays analyst Brian Johnson tells investors in a research note titled "Don't blame just Beijing for share weakness." China has not raised tariffs yet on inbound U.S.-made autos, the analyst points out. While the market may be pricing in some future risk of auto tariffs in the coming days, the major exporters to China are Daimler, BMW and Tesla, "not the Big 3," Johnson writes. This makes auto tariffs less of a negotiating tool with the Trump administration, he contends. Johnson reiterates an Underweight rating on Tesla with a $192 price target.