Industry News

JPMorgan slashes Tesla stock price target

  • 2018-08-21 16:40

Time for Elon Musk to step aside at Tesla?

Wall Street Journal tech and autos reporter Tim Higgins on concerns over the future of Tesla.

JPMorgan analysts have slashed their stock price target on Tesla to $195 from $308, back where it was before chief executive Elon Musk’s going-private tweet.

On Aug. 7, Musk tweeted that he is considering talking Tesla private for $420 – “funding secured.”

In communicating the downgrade, JPMorgan’s analysts wrote, “Our interpretation of subsequent events leads us to believe that funding was not secured for a going private transaction, nor was there any formal proposal.”

“Tesla does appear to be exploring a going private transaction, but we now believe that such a process appears much less developed than we had earlier presumed, suggesting formal incorporation into our valuation analysis seems premature at this time,” analyst Ryan Brinkman wrote in a client note.

JPMorgan analysts upped their forecast on Tesla from $198 to $308 when Tesla’s stock surged following Musk’s tweets. They have an underweight rating on the stock. The media price target of analysts covering Tesla is $336, according to Reuters.