Today JP Morgan Chase slashed their outlook for Tesla stock from $305 to $195.00. That is bound to make short-sellers happy. Analysts say they believe the stock will fall as there is no actual secured funding for taking the company privately. JPM Analysts believe the stock will fall through into December by 36%.
JPM issued the following as part of their statement on their reasoning for the slashed outlook for Tesla Shares: “Our interpretation of subsequent events leads us to believe that funding was not secured for a going private transaction, nor was there any formal proposal”
JPM has already had a rather bleak outlook for the stock. Pretty well since 2015, they have often had one of the lowest price targets for Tesla Stock with a continual underweight rating and often a price forecast of $200 or sometimes lower so this latest call may not impact the stock as much as expected.
As well in the past there have been many analysts who have downgraded the stock over the years but this kind of outlook based on the latest bizarre tweets from Musk, might just be enough to send the stock lower for the week.
There could be another chance for a new trade in Tesla stock tomorrow as this downgrade could pressure the stock still lower.
I will post any trades done this week in Tesla Stock (TSLA) as they occur.
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