By Michael Elkins
J.P. Morgan reiterated an Underweight rating and $120.00 price target on Tesla (NASDAQ:TSLA) following the electric vehicle company’s most recent investor day presentation.
Tesla and CEO Elon Musk held their investor day Wednesday, where the billionaire revealed his ‘Master Plan Part 3”. The plan was centered around creating a sustainable energy economy through electrification. However, the presentation seemed to be heavy on the “what” but severely lacked on the “how”.
Analysts wrote in a note, “Our estimates and fundamental view on Tesla shares are unchanged after the firm’s investor day yesterday which was heavy on discussion relative to clean energy transition and on the company’s approach to designing and developing vehicles generally, but short on specifics or measurable metrics to track its progress. From our conversations with investors heading into the event, it seems clear expectations were higher than Tesla met with regard to certain elements of the product road map, with many hoping to witness the debut of a lower priced (~$30K) “Model 2” in order to sustain rapid unit growth, or perhaps refreshed versions of the high volume Model 3 and Model Y, which have carried over more or less unchanged (at least stylistically) since their debut in 2017 and 2020, respectively, despite a bevy of recent new competition.”
Analysts expect a negative reaction in the shares, given a lack of supporting details at the Investor Day to cause investors to revise higher (or even potentially fulfill) near- and mid-term growth expectations.
Shares of TSLA are down 5.52% in mid-day trading on Wednesday.