Barclays slashes its Tesla stock price target by 20%, gives 3 reasons why next week's Q1 earnings call will disappoint

• Barclays slashed its Tesla stock price target by 20% to $185 on Wednesday.

• Barclays said Tesla's upcoming earnings call would likely be a negative catalyst for the stock.

• "We expect little commentary from Tesla to dissuade investors that near-term fundamentals remain weak," Barclays said. 

Tesla is about to host what may be "one of the most widely anticipated calls ever" next week, and Barclays doesn't expect anything good to come from it.

In a note on Wednesday, Barclays slashed its Tesla stock price target by 20% to $180 from $225, arguing that the company's upcoming first-quarter earnings report on April 23 will be a negative catalyst for the stock.

Barclays' forecast comes just two weeks after Tesla badly missed its first-quarter vehicle deliveries, a week after it was reported that the company was ditching its low-cost Model 2, and just days after the company laid off 10% of its global workforce and lost two key executives.

Barclays analyst Dan Levy said he expects Tesla to miss Wall Street estimates when it reports results next week, with gross margins likely to disappoint investors, while CEO Elon Musk's recent decision to go all-in on a robotaxi fleet unlikely to be met with enthusiasm.

"Plans for Model 2 will likely get most attention but don't expect satisfying answer," Levy said.

While the focus on Tesla should be its ability to grow vehicle deliveries in an increasingly competitive market for EVs, as well as increase its profit margins, instead that likely won't drive the earnings call.