BNP Paribas Exane initiated coverage of Tesla (NASDAQ: TSLA) on October 16, 2025, with an "Underperform" rating and a $307 price target, suggesting a significant downside from its current trading levels. The firm's analysts argue that Tesla's valuation is excessively reliant on artificial intelligence projects like the Robotaxi and Optimus robot, which currently generate no sales. According to their analysis, these two future ventures account for approximately 75% of their price target, leading them to view the stock's risk/reward profile as unfavorable. In contrast, on the same day, Barclays raised its price target for Tesla from $275 to $350, maintaining an "Equal Weight" rating. Barclays cited the company's accelerating narrative around autonomy and AI as a positive driver for market sentiment, while still expressing some caution regarding near-term business fundamentals.
BNP Paribas Initiates Tesla Coverage with "Underperform" Rating, Citing Overvaluation of AI Ventures
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