Barclays initiated coverage of Tesla shares with an overweight rating after the bell on Tuesday, saying shares of Elon Musk’s electric vehicle maker should rebound this year due to its relative financial strength and lead in software. “We believe that Tesla’s clear leadership in the global EV transition and the emergence of software-defined vehicles, as well as the positive trajectory in terms of volume, should result in higher performance for the stock,” wrote analyst Dan Levy. Levy’s 12-month price target is $275, representing a 31% upside from Tesla’s closing price Tuesday. Tesla shares will lose 65% of their value in 2022, but have fallen this year. Shares have rebounded nearly 70% in 2023 and have doubled down in 52 weeks. Of course, the stock is still down 28% over the past 12 months. “We believe Tesla remains the clear leader in the race to the EV transition – bolstered by the market amid the recent recovery seen by TSLA,” Levy wrote. “With the edge of the frontier and the lack of constraints faced by older car manufacturers, we expect TSLA’s volume to grow by a strong 20%. [compound annual growth rate] through the end of the decade.” TSLA 1Y mountain Tesla 1-year Levy opened coverage on the US auto industry and mobility and holds a neutral view of the overall space, citing recessionary pressure. Barclays likes five other stocks as buys on the spot: Rivian, Adient, Borgwarner, Mobileye and Aptiv. —With reporting by Michael Bloom.