JPMorgan Raises Tesla Price Target to $130, Cites Softer Q3 Deliveries and 2024 Outlook

JPMorgan analysts raised their price target on Tesla (NASDAQ:TSLA) to $130 from $115 while maintaining an Underweight rating on the stock.

The analysts explained the adjustment comes after Tesla reported lower-than-expected Q3 2024 deliveries of 462,890, which fell short of the 491,503 units previously projected. As a result, the analysts lowered estimates for Tesla's Q3 earnings to $0.60 per share, down from $0.64, and also slightly reduced full-year 2024 and 2025 EPS forecasts to $2.25 and $2.90, respectively.

Despite the higher target, the analysts noted that Tesla still faces significant downside risk and highlighted concerns about the company's automotive growth stagnation. They pointed out that Tesla's 2024 deliveries are now expected to decline 1% year-over-year, making it harder to sustain the hyper-growth narrative. Nonetheless, Tesla remains generously valued as the world’s most valuable automaker, with an estimated market capitalization of $400 billion, compared to Toyota's $290 billion, despite Tesla's lower earnings and cash flow.