- JPMorgan increased its price target on Tesla to $150, maintaining an ‘Underweight’ rating.
- The new target suggests a possible 66% decrease from Tesla‘s last closing price.
- The update followed Tesla‘s report of record third-quarter deliveries, surpassing expectations by 12%.
- JPMorgan forecasts third-quarter earnings per share of $0.59 for Tesla, higher than previous estimates.
- U.S. electric vehicle demand surged in Q3 ahead of the federal tax credit expiration, boosting deliveries for Tesla and competitors.
JPMorgan on Friday increased its price target for Tesla stock to $150, up from $115, while keeping an ‘Underweight’ rating on the shares. The new target points to a potential 66% decline from Tesla‘s closing price on Thursday.
This adjustment came after Tesla announced third-quarter deliveries of 497,099 vehicles, which was 12% higher than analyst predictions. JPMorgan now expects Tesla to report third-quarter earnings per share of $0.59. This figure is down 18% from last year but is above both JPMorgan‘s prior forecast of $0.48 and the consensus estimate of $0.50.
According to a note sent to investors, the analyst attributed the higher deliveries to a “temporary stronger-than-expected industry-wide pull-forward” in demand for electric vehicles in the U.S. due to the approaching expiration of the $7,500 federal tax credit for EV purchases on September 30. The firm added, “it is too soon to declare Tesla as having sustainably returned to growth in its core business”, and does not expect significant positive changes to consensus forecasts after the third quarter.
In the latest quarter, Tesla sold 481,166 Model 3 and Model Y vehicles, along with 15,933 units of its higher-end models, including the stainless steel Cybertruck, Model S sedan, and Model X SUV. The figures marked the company’s highest quarterly deliveries so far, largely boosted by U.S. customers rushing to buy before tax incentives ended.
Other major automakers, such as Ford and General Motors, also saw increases in electric vehicle sales in the U.S. last quarter, though their sales remained below Tesla‘s totals.
So far this year, Tesla shares have gained 9%, and are up 83% over the past 12 months.
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