"JPMorgan raised its price target on Tesla shares from $115 to $150. It maintained its 'Underweight' rating on the stock. Despite Tesla reporting 497,099 deliveries, about 12 percent above the 443,000 anticipated from the consensus, JPMorgan is still skeptical that the company can keep up its momentum, stating most of its Q3 strength came from leaning on the removal of the $7,500 EV tax credit, which expired on September 30."
"The firm said Tesla benefited from a "temporary stronger-than-expected industry-wide pull-forward" as the tax credit expired. It is no secret that consumers flocked to the company this past quarter to take advantage of the credit. The bump will need to be solidified as the start of a continuing trend of strong vehicle deliveries, the firm said in a note to investors."
"There are two distinct things that stick out with this note: the first is the lack of recognition of other parts of Tesla's business, and the confusion that surrounds future quarters. JPMorgan did not identify Tesla's strength in autonomy, energy storage, or robotics, with autonomy and robotics being the main focuses of the company's future. Tesla's Full Self-Driving and Robotaxi efforts are incredibly relevant and drive more impact moving forward than vehicle deliveries."
Tesla reported 497,099 deliveries in Q3, about 12 percent above the 443,000 consensus estimate, and achieved record vehicle deliveries and energy deployments. JPMorgan raised its price target on Tesla shares from $115 to $150 while maintaining an Underweight rating. JPMorgan attributed most Q3 strength to a temporary industry-wide pull-forward caused by the expiration of the $7,500 EV tax credit on September 30 and expressed skepticism that momentum will persist after Q4. Critics note JPMorgan did not account for Tesla's autonomy, energy storage, or robotics strengths, and emphasize Full Self-Driving and Robotaxi efforts as future growth drivers.
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