Analysts at JP Morgan just issued an urgent warning . . . Tesla Motors stock is very, very overvalued.
The firm rates Tesla Motors stock an “Underperform” – which means SELL.
Yet Wall Street could soon be recommending this new EV battery stock. And it could surge 617% in the after its late December initial public offering.
JP Morgan analysts rate Tesla Motors (NASDAQ: TSLA) an Underperform. And they’ve given the stock a price target of $90.
That’s an 85% decline from the stock’s recent price of $612.
JP Morgan essentially says it’s crazy that Tesla’s stock is up 617% in 2020.
Tesla’s $590 billion market value makes it more valuable than the two largest automakers combined.
That’s right. Tesla Motors is worth more than Volkswagen and Toyota. Those two companies produced 42.1 million vehicles last year. Meanwhile, Tesla hopes to make 500,000 vehicles this year.
JP Morgan’s research report says . . .
“We recommend investors not weight Tesla shares in their portfolio in equal proportion to the S&P because Tesla shares are in our view and by virtually every conventional metric not only overvalued, but dramatically so.”
The analyst explains that it’s hard to image any scenario where Tesla Motors’ financial performance could justify the current valuation.
Tesla Motors is without a doubt an amazing company. And I’ve been bullish on the stock since 2011.
Investors have been piling into TSLA shares.
Tesla shares will be added to the S&P 500 on Dec. 21. That move will force exchange-traded funds (ETFs) and mutual funds to buy Tesla stock.
However, this may be a situation where Tesla stock rises in advance of the S&P 500 inclusion. And then the stock sells off after it’s added to the index.
Keep in mind that Tesla announced a $5 billion stock offering this week.
This suggests that CEO Elon Musk also thinks the valuation is rich. This is the company’s second stock offering in the last three months.
Tesla is looking to make huge improvements to its battery technology. That’s why the company is investing billions in new battery factories.
However, the company could be quietly considering BUYING this new lithium battery technology.
One top Tesla and SpaceX Battery engineer QUIT working at Tesla. And he’s launching a new EV battery stock . . . and landing contracts worth +$200 million!
This EV battery stock plans to IPO before Dec. 31. And today you can claim Pre-IPO shares.
Go here ASAP – before Tesla acquires this new EV battery stock.
Yours in Wealth,
P.S. This new EV battery stock could deliver much, much bigger profits than Tesla.
Once it’s publicly traded – we could see Wall Street analysts jump onboard with BUY RECOMMENDATIONS.