JPMorgan sees risk to Tesla shares despite being ‘rescued’ near-term

JPMorgan sees the risk of further negative earnings revisions and continued multiple compression for Tesla after the company’s Q1 results tracked softer than recently significantly reined in estimates. Tesla shares “may be rescued” near term from the effect of lower near-term earnings expectations, on account of its efforts to refocus attention on autonomous robo-taxis and the proclamation yesterday that certain new product introductions previously planned for the second half of 2025 would be accelerated in an effort to rekindle growth, the analyst tells investors in a research note. However, JPMorgan does not think the shares can sustain long term their current “still lofty valuation” as investors increasingly incorporate the implications of the near-term expectations reset for long-term growth. It keeps an Underweight rating on Tesla with a $115 price target.