Barclays analyst Brian Johnson says he's taking the red pill on Tesla (NASDAQ:TSLA) in sticking with a reality-based view (Underweight, $165 PT) of the automaker.
The Matrix analogy (Morpheus: "You take the blue pill, the story ends. You wake up in your bed and believe whatever you want to believe. You take the red pill, you stay in Wonderland, and I show you how deep the rabbit hole goes.") assumes that a bulk of investors are taking the blue pill to see how far the rabbit hole they can go with the rally driven off of cult psychology.
Johnson hits the same themes on valuation, EV competition and $100/kWh battery cost timeline in his note, but admits that he doesn't see any near-term data points to reverse the upward momentum of Tesla's share price.
TSLA +0.68% premarket to $297.00.
Now read: Tesla Short Interest »