Tesla is the ‘OG meme stock’ according to Barclay’s Dan Levy

[Tesla Cybertruck display at a dealership. Tesla offers the Cybertruck with driving range of up to 340 miles.]
jetcityimage

Tesla’s (NASDAQ:TSLA [https://seekingalpha.com/symbol/TSLA]) significant September stock rally – up 29% from a month ago – has Dan Levy, senior equity research analyst at Barclays, drawing parallels to the meme stock phenomenon of 2020 and 2021.

Levy attributed the recent surge to retail investor excitement surrounding the electric vehicle maker’s upcoming annual shareholder meeting, according to an interview conducted by CNBC.

“There is more to the stock than the meme phenomenon. But the reality is…it is the, so to speak, OG meme stock,” he said.

Levy emphasized that Tesla’s (NASDAQ:TSLA [https://seekingalpha.com/symbol/TSLA]) robust retail following continues to drive the stock’s performance, often disconnected from traditional fundamentals.

He also highlighted the stock’s “nonsensical” price-to-earnings multiple of 180x 2026 earnings, suggesting that Bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) serves as a better comparison than conventional market metrics.

Levy also pointed to additional technical factors influencing Tesla’s (TSLA [https://seekingalpha.com/symbol/TSLA]) stock movement, including its relative performance to other Magnificent Seven (MAGS [https://seekingalpha.com/symbol/MAGS]) tech giants and heightened options activity.

Elon Musk’s renewed engagement with Tesla (TSLA [https://seekingalpha.com/symbol/TSLA]) represents a significant factor in the company’s recent performance, he added.

“What we are seeing is that at least for now, there is a more engaged Elon Musk,” Levy said, referencing Musk’s open market purchase and the board’s proposed compensation plan that aims to secure the CEO’s focus on driving Tesla’s (TSLA [https://seekingalpha.com/symbol/TSLA]) growth.

Tesla (TSLA [https://seekingalpha.com/symbol/TSLA]) remains what Levy describes as “an ultimate narrative stock,” where current vehicle sales represent a “fading story” compared to future growth prospects.

“The future growth that is there, and that does underpin the view of bulls, is something that people are getting excited about,” he explained, adding that “Tesla (TSLA [https://seekingalpha.com/symbol/TSLA]) gets the credit for this today versus others that may not get the same credit because of the power of the narrative and the power of excitement around Elon Musk.”

MORE ON TESLA:

* Tesla's Optimus Could Become Obsolete Because Of Gemini Robotics [https://seekingalpha.com/article/4826620-tesla-optimus-obsolete-because-of-gemini-robotics]
* Tesla Board Prints Billions In Pay As Musk Buys $1B, And I'm Shorting The Signal [https://seekingalpha.com/article/4826258-tesla-board-prints-billions-in-pay-as-musk-buys-1b-and-im-shorting-the-signal]
* The Maximum Valuation For Tesla [https://seekingalpha.com/article/4826217-the-maximum-valuation-for-tesla]
* Fading the humanoid robot revolution: iRobot's co-founder issues a warning for investors [https://seekingalpha.com/news/4499656-fading-the-humanoid-robot-revolution-irobots-co-founder-issues-a-warning-for-investors]
* Notable analyst calls this week: J&J, Intel and Adobe among top picks [https://seekingalpha.com/news/4499578-notable-analyst-calls-this-week-jj-intel-and-adobe-among-top-picks]