April 15, 2023

How Elon Musk Has Brought Tesla Here: Barclays

Throughout the last few years, Tesla CEO Elon Musk has remained a regular topic of mainstream conversation. And while some may not like certain elements of Musk’s approach, others have highlighted his significance to Tesla, including one automotive analyst in a recent video interview.

Above: A Tesla Model Y (Image: Casey Murphy / EVANNEX).

In a recent segment with Yahoo Finance, Barclays Senior Auto Analyst Dan Levy discussed how he thinks Musk has been a crucial piece of Tesla’s journey, alongside a broad team of talented engineers and employees. In recent weeks, Barclays has reiterated an Overweight rating on Tesla with a $275 price target on the automaker’s stock.

Calling Musk a “core question” during the interview, Levy discussed reasons why he thinks Tesla’s stock still has room to rally. When pressed by the interviewer on the “polarizing CEO” that is Elon Musk, Levy simultaneously emphasized the large and incredible team behind the leader, and Musk himself as the catalyst for much of Tesla’s success.

“I think another message from the company also at the Investor Day — the reason why they had by the end of the Investor Day 17 people on stage alongside Elon — was to show the depth of their bench,” Levy said in response to questions about Musk and his purchase of Twitter as a potential distraction. “So, yes, Elon is still a critical factor here. He is the one driving the vision. But I think the point is that there is more to Tesla than Elon.”

When asked in a follow-up question whether he thought Musk was a pro or a con to Tesla, Levy again pointed to Musk’s vision, adding that the company as it is today wouldn’t be possible without him.

“Tesla would not have done what they've done without Elon,” Levy added. “So I don't think they would have gotten to this place. And there's a very fascinating history of Tesla that there were a lot of decisions that many of us, myself included, questioned along the way.”

Regarding Twitter, Levy noted that the overhang “was” a question, instead choosing to focus on Tesla’s financials. Levy pointed to Tesla’s EBIT margin last year (17 percent) to show how the automaker compares with other industry giants, such as Ford which just reported around 40 percent on its EBIT margins for electric vehicles. The long, difficult road to EV profitability appears to lead back to Musk, in Levy’s mind.

“Look, Tesla would not have gotten to the point where they are taking some very unorthodox routes, without Elon's guidance.”

Watch Levy's full segment with Yahoo Finance below.