Tesla Inc. TSLA, owned by Elon Musk, experienced an 8% surge in its stock following an earnings miss, leaving JPMorgan analysts scratching their heads.
What Happened: JPMorgan analyst Ryan Brinkman was left perplexed by Tesla’s stock performance. Despite a 38% shortfall in earnings before interest and taxes and the lowest profit margin in years, Tesla’s shares soared.
According to the report by Market Insider, Brinkman offered several theories for the stock’s rise, including CEO Elon Musk’s ambitious projections during the earnings call. However, he remained skeptical, maintaining his $135 price target for Tesla, indicating a potential 68% downside from current levels.
“The move higher in Tesla shares bore no relation whatsoever to the company’s financial performance in the quarter just completed or to its outlook for growth in the coming year,” Brinkman told the outlet.
On Wednesday, Tesla reported its…
