Barclays Positive On Tesla, But Crossing The Chasm Will Be Tough

In an equity research note Tuesday, Brian A. Johnson of Barclays maintained his Equal-Weight rating on Tesla Motors Inc (NASDAQ: TSLA), with his $190 price target unchanged. Johnson feels the near-term should be positive, but chasm-crossing challenges remain.

"Heading into Tesla's "much anticipated" product announcement on 4/30, Tesla stock should have momentum, with potential for positive trajectory beyond that – demand concerns are de-risked for now, China pressures have bottomed, and the 3Q Model X intro could generate buzz. Yet, consistent with our views in "Crossing the chasm is tougher than it looks," we maintain a more cautious structural stance given risks in becoming a mass-market OEM are not properly recognized."

Johnson also stated that beyond the potential for a "sell the news" reaction post the April 30 announcement, he believed the near-term flow of datapoints for Tesla was positive, which should support continued upward momentum for the stock.

Shares of Tesla closed Monday at $205.27, 8 percent above the $190 price target.