Tesla price target lowered to $120 from $125 at JPMorgan

JPMorgan analyst Ryan Brinkman lowered the firm’s price target on Tesla to $120 from $125 and keeps an Underweight rating on the shares. The analyst believes Tesla’s "aggressive" price cuts could help "catalyze and accelerate what may have otherwise been a more modest or protracted pricing normalization process." The price cuts are positive for the consumer, negative for Tesla, negative for other automakers and potentially positive for parts suppliers, the analyst tells investors in a research note. The firm materially lowered estimates for Tesla to reflect the "margin dilutive" price cuts. It cut its 2023 earnings per share estimate to $2.29 from $4.60 and believes the company’s margin headwind may be underappreciated by investors.