Why JPMorgan Is Raising Tesla Delivery Estimates, EPS Estimates, Price Target

JPMorgan analysts increased several estimates for Tesla, Inc. TSLA Wednesday following the automaker’s second-quarter vehicle delivery update.

The Tesla Analyst: Ryan Brinkman maintained the firm’s Underweight rating on shares of Tesla and raised its price target from $155 to $160.

The Tesla Takeaways: JPMorgan raised its second-quarter EPS estimates from 86 cents to 91 cents, Brinkman said in a Wednesday note.

The vehicle deliveries slightly surpassed consensus estimates of 200,879 by 371 vehicles and the bank’s estimates by 4,560, the analyst said. 

The analysts also raised their calendar year 2021 delivery forecasts by 5,000 to 820,000 and increased 2021 EPS estimates from $4.10 to $4.20, the analyst said.

Analysts will be looking at Tesla’s upcoming earnings report for insight into China sales trends following several issues and the Model S Plaid launch in the U.S., said Brinkman.

Part of the firm’s bearish sentiment toward Tesla stems from the inflationary environment, the analyst said.

Specifically, the weighted average year-over-year cost increase of 118% in automotive parts commodities and a 10.7% year-over-year increase in new U.S. car prices.

TSLA Price Action: Shares of Tesla lost 2.26% Wednesday, closing at $644.65. 

Photo: courtesy of Tesla.