JPMorgan believes the 68% rally in Tesla shares from their 52-week low of $142.05 on April 22 to last night’s close was driven largely by enthusiasm for last night’s robotaxi event. The event, however, notably lacked in detail, including in regards the sensor suite, the path to regulatory approval, or even the HMI for its network and app or key aspects of the business plan, the analyst tells investors in a research note. Tesla said robotaxis were planned to be sold external to the company, even to individuals, which struck JPMorgan “as having particular potential to deflate bullish expectations.” Investors are now talking about capturing the up-front economics on a $30,000new vehicle sale, rather than retaining a “purported printing machine,” the firm explains. As such, it sees “material downside risk for the shares.” JPMorgan keeps an Underweight rating on Tesla with a $130 price target. It calls the event “underwhelming.” The stock in morning trading is down 8% to $220.26.
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