The downgrade follows Tesla's disappointing third-quarter vehicle delivery report, with the bank noting that the company may not achieve any growth in full-year vehicle deliveries for the first time in its history.
Year-to-date, Tesla has delivered 1.29 million vehicles, needing over 520,000 deliveries in the fourth quarter to meet its target of 1.81 million for 2023, a goal that appears ambitious given Wall Street’s estimate of 500,000 deliveries.
JPMorgan analyst Ryan Brinkman emphasized that Tesla's stagnation in growth could lead investors to reassess the company’s high valuation, which Brinkman considers overly generous.
Despite its leading market capitalization compared to Toyota, Tesla's earnings and cash flow have not kept pace, raising questions about its growth narrative.
The divergence in analyst opinions is stark, with Brinkman's bearish stance contrasting sharply with more bullish views, such as Morgan Stanley's Adam Jonas, who has set a price target of $310. This split reflects the ongoing debate over whether Tesla is primarily an automaker or a technology company, especially as the company prepares for an event showcasing its robotaxi plans on October 10.
Year-to-date, Tesla has delivered 1.29 million vehicles, needing over 520,000 deliveries in the fourth quarter to meet its target of 1.81 million for 2023, a goal that appears ambitious given Wall Street’s estimate of 500,000 deliveries.
JPMorgan analyst Ryan Brinkman emphasized that Tesla's stagnation in growth could lead investors to reassess the company’s high valuation, which Brinkman considers overly generous.
Despite its leading market capitalization compared to Toyota, Tesla's earnings and cash flow have not kept pace, raising questions about its growth narrative.
The divergence in analyst opinions is stark, with Brinkman's bearish stance contrasting sharply with more bullish views, such as Morgan Stanley's Adam Jonas, who has set a price target of $310. This split reflects the ongoing debate over whether Tesla is primarily an automaker or a technology company, especially as the company prepares for an event showcasing its robotaxi plans on October 10.