Tesla's disappointing Q1 data leads to price target cut and 'sell' rating reaffirmation

From NASDAQ: 2024-04-04 04:20:00

Electric vehicle leader Tesla (NASDAQ: TSLA) shocked investors with disappointing first-quarter production and sales data, leading JPMorgan analyst Ryan Brinkman to reiterate his firm’s “sell” rating and lower the price target to $115 per share. Ford, on the other hand, reported a significant surge in EV and hybrid vehicle sales, putting pressure on Tesla’s valuation.

Tesla’s first-quarter vehicle deliveries fell nearly 9% year-over-year, raising concerns about the company’s growth plans. With a forward P/E ratio of nearly 60, compared to Ford’s below 8, investors are reevaluating Tesla’s hyper growth company valuation multiple. Tesla needs to present plans for reaccelerating growth when it releases its full first-quarter earnings report on April 23.

As investors await Tesla’s next steps, JPMorgan Chase, an advertising partner of The Ascent, reaffirms its “sell” rating on Tesla stock. Analysts warn that without a quick boost in volume and sales growth, Tesla’s stock price could face further declines. Stay tuned for Tesla’s full first-quarter earnings report on April 23 to learn about the company’s strategy moving forward.



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