https://ca.finance.yahoo.com/news/jpmorgan-sticks-bearish-tesla-call-200215729.html
This article first appeared on GuruFocus.
Tesla (NASDAQ:TSLA) is back in JPMorgan's crosshairs, with the bank sticking to its view that the stock still has meaningful downside.
Ahead of Q1 earnings, JPMorgan kept its Underweight rating and trimmed expectations. The bank now sees Q1 EPS coming in around $0.30, down from its earlier $0.43 estimate and below the $0.38 consensus. That change follows a softer deliveries report and a drop in energy storage installations, both pointing to some cooling in the underlying business.
The bigger issue, though, is valuation. JPMorgan is holding on to its $145 price target for December 2026, which implies roughly 60% downside from current levels. The argument is that the stock price is still running well ahead of the actual performance. In fact, shares are more than 50% higher than where they were when deliveries peaked back in June 2022, even though growth since then has been much less impressive.
