Sentiment shift on Tesla a warning sign for all riskier assets

This morning, JPMorgan Chase issued a note to clients, reducing their price target for Tesla shares from $308 a share to $195 a share. And Tesla shares are down significantly on the news. This is the clearest indication yet of a shift in sentiment on Tesla, that investors should see as a broader risk-off marker more generally.
Dilution
The way I am seeing this price target downgrade for Tesla is as a warning about potential dilution for Tesla shareholders rather than a warning of default or anything more drastic. Tesla has a lot of prominent backers who would ostensibly give the company a lifeline if it ran into funding issues. But that lifeline will come at a price.

And given the erratic behavior of Tesla CEO Elon Musk, more investors now doubt Tesla's ability to execute on its promise t...


As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.

Click here to join. Your readership is greatly appreciated!

Registered users can log in by entering details here or below.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More