Tesla inventory build continues, price cuts likely needed, says Barclays

Barclays notes that Tesla reported Q1 deliveries of 422,900, a slight beat versus consensus of 421,500. Production came at 441,000, likely above most expectations, the firm adds. Barclays points out that inventory build continues, with 75,000 units of production over deliveries in last 3 quarters. Incremental price cuts likely needed amid inventory build, the firm says, especially as production at Austin/Berlin ramps. Focus shifts to gross margins, as some have questioned ability to clear target 20%, Barclays adds. The firm has an Overweight rating on the shares with a price target of $275.