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Why This Analyst Is Still Bearish About Tesla Despite Record Q3 Deliveries? – Tesla Motors (TSLA)



Tesla Inc (NASDAQ:TSLA)’s file quarterly deliveries might not have swayed an analyst from JPMorgan to shed his bearish stance, however all the identical, he has not shied away from giving credit score the place it is due.

The Tesla Analyst: Analyst Ryan Brinkman maintained an Underweight ranking on Tesla shares however elevated the worth goal from $180 to $215.

The Tesla Thesis: Tesla’s higher third-quarter deliveries differentiate it from different automakers, which have struggled to safe a enough provide of semiconductors, analyst Brinkman mentioned.

This means strong company-specific execution on this space in addition to sturdy underlying demand, the analyst mentioned.

JPMorgan raised its third-quarter and full-year estimates to account for stronger-than-expected third-quarter world deliveries.

Associated Hyperlink: Why Tesla’s Q3 Numbers Are ‘Eye Popping’ and Laborious to Poke Holes In

The brand new worth goal, Brinkman mentioned, continued to indicate materials draw back from present ranges however is justified. It values Tesla because the second-largest automaker behind Toyota Motor Corp (NYSE:TM) and forward of Volkswagen AG (OTC:VWAGY), he added.

“Tesla fundamentals, together with unit quantity outlook, proceed to enhance, though its current valuation in our view continues to demand much more,” JPMorgan mentioned. The agency’s unit quantity estimate of 854,000 for Tesla in 2021 is the 18th largest. Toyota, with a market cap of $290 billion in comparison with Tesla’s $776 billion, is estimated to promote 9,864,000 models, it added.

Common Motors Firm (NYSE:GM) and Ford Motor Firm (NYSE:F), with market caps of merely $77 billion and $56 billion, respectively, are estimated to provide 4,161,000 and three,551,000 autos in 2021, the agency mentioned.

In opposition to JPMorgan’s view, BofA Securities analyst John Murphy mentioned so long as the corporate can maintain funding outsized progress with nearly no-cost capital driving capability growth, its excessive inventory worth will likely be justified.

Murphy has a Impartial ranking and an $800 worth goal for Tesla shares.

Tesla Worth Motion: Eventually examine Monday afternoon, Tesla shares had been up 1.05% at $783.37.

Associated Hyperlink: EV Week In Evaluation: Tesla Pushes Out FSD Broader Beta Rollout, Chinese language Trio Delivers, Ford Doubles Down On EV Funding, Lordstown’s Prudent Technique

Picture by Austin Ramsey on Unsplash

 

 

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