Barclays has raised its price target for Tesla (TSLA, Financial) from $235 to $270 and retained an "Equal-weight" rating for the electric vehicle manufacturer. This transition is consistent with changes resulting from the U.S. election that commentators think have supported Tesla's story without changing its fundamentals.

One of the leading causes behind this shift in the forecast is the expected elimination of the U.S. EV tax credit by 2026. Though such a policy change may put pressure on domestic sales, Tesla is yet to be hit by this new policy as there is a purchasing frenzy before the expiry of such policies. Also, Tesla being the sole automotive maker among the American OEMs that have reported a profit in the manufacture of electric vehicles could mean that it shall continue to consolidate the market share even if its competition loses significant shareholder funds.

Barclays also valued Tesla's "narrative" premium rather highly, especially as the company's disruption persona remained popular after the election. In this light, the current performance can be compared to the boost investors experienced in the 2021-2022 outlook for EV makers.

However, the upbeat update to the price target shows that sentiment remains cautiously optimistic about Tesla's capacity to operate in a challenging environment while monetizing its dominance in the EV space?.

This article first appeared on GuruFocus.