Barclays is taking a cautious approach on Tesla ahead of the company's first-quarter earnings report. The bank cut its price target on the electric vehicle maker to $275 from $325. The new forecast implies 13.9% upside potential from Thursday's close. U.S. markets were closed Friday due to Good Friday. Analyst Dan Levy also reiterated his equal weight rating on shares. "The set-up for Tesla into 1Q EPS is confusing. However, net net we see potential for the stock to outperform," he said. "On the one hand, Tesla faces questions on increasingly weaker fundamentals. 1Q auto margin ex credits is expected to reach a new low. And amid a soft start on 2025 volume, we believe it will be increasingly difficult for Tesla to achieve volume growth in 2025," Levy noted. That said, a "good narrative could outweigh weak fundamentals." If CEO Elon Musk indicates plans to scale back his political profile and focus more on Tesla, it could boost the stock, according to Levy. "This is especially the case given the elevated importance of AI/ autonomous/bots to the Tesla thesis, with Elon Musk quite central to the narrative," Levy wrote. Musk's involvement in President Donald Trump's administration has lead to protests and boycotts of Tesla vehicles globally. Another prospective tailwind is Tesla's Full Sell Driving launch event in June, the analyst said. Despite the unclear path to monetization for the technology, it could fuel excitement, he added. Any commentary on production of an affordable Model 2.5 could also be a boost, Levy continued, "albeit it is important to be mindful of how tariff dynamics impact Tesla's plans to roll out its new low-cost model." Tesla shares have been under pressure this year, losing 40.2%. The stock fell another 3.5% in the premarket Monday. Tesla is slated to report earnings Tuesday after the bell. TSLA YTD mountain TSLA year to date Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today's dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You'll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!