Barclays increases its Tesla price target from $350 to $360, along with maintaining an Equalweight rating, as the stock trades above this value at approximately $449. Tesla is already reaching its valuation levels, as its P/E ratio exceeds 300, which causes the experienced growth investors to question these valuation figures.
Barclays maintains its positive outlook not due to its car sales and profit margins, but it is due to Tesla’s driverless robotaxis that operate without any human supervision.
Austin Goes Fully Driverless, at Least in Theory
The upgrade enables Tesla to provide robotaxi services in Austin without safety monitors after launching the service in June 2025. The system enables riders to maintain a complete driverless experience, which brings Tesla closer to its competitors Waymo and Zoox.
Barclays explains that this development is not a citywide automated transportation system at the moment. Currently, only a few vehicles operate without safety drivers, while most of the vehicles require human drivers to monitor operations from the passenger seat in case of AI errors.
Reality Check
The milestone exists to be very real, but its scale makes it more like a cautious startup. After seven months of operations, approximately 30 to 50 robotaxis function in Austin, and the launch includes only 10 robotaxis that are functional at the moment.
Musk predicted that 500 robotaxis would operate throughout the city by 2025 end, which remains a distant target from his original vision of October. The report from Barclays indicates that high demand along with limited fleet size causes restricted service access because driverless operation exists as a requirement for economical large-scale implementation of the technology.
Investors Watch Closely
The upcoming earnings report from Tesla has led investors to monitor the situation closely because some analysts have raised concerns about the stock being overvalued. The robotaxi update will become an important element for investors because the earnings report for Tesla will be delivered in the upcoming days.
The introduction of a new insurance product by Lemonade for Tesla vehicles operating with Full Self-Driving technology has been seen by Morgan Stanley as a silent affirmation of Tesla’s technological capabilities. However, the market remains divided between two groups of people who either believe in a future without drivers, or they doubt Tesla’s ability to achieve its goals.
Bottom Line
Barclays’ new price target demonstrates progress, but it shows that they have not yet achieved its goals. Tesla has demonstrated its ability to operate fully autonomous vehicles on public streets, so the company must demonstrate its capacity in order to expand, which will be the main focus for investors.
The robotaxi operates without a driver, while Wall Street shows a cautious interest in the system, and Tesla’s market valuation is all set for future developments.