The latest selloff is initially supported by a network outage, but it is not yet clear that an outage would lead to any problems with vehicles. The reports show that users are unable to connect to their vehicles via the mobile app. In addition, shares of the largest electric vehicle company extended the downtrend in Thursday trading as court-ordered Elon Musk company to stop cutting forests in order to protect hibernating snakes and lizards. Tesla seeks to build its first European Gigafactory in Germany with plans of commencing production from fiscal 2021.
JPMorgan says Tesla stock is overvalued
In a tug of war between bulls and bears, JPMorgan doubles down on a bearish Tesla stock performance forecast. Although JPMorgan analyst Ryan Brinkman appreciated the trader’s strategies of buying Tesla stock on S&P inclusion news, the analyst says Tesla stock is dramatically overvalued. He says Tesla stock trades at 1,325x LTM P/E and at 291x 2020E and 175x NTM. The analysts also noted that Tesla’s earnings forecasts for the upcoming years declined when compared to the share price rally of 800% in two years.
Bulls are optimistic for more gains
Several other prominent market pundits including Wedbush have presented bullish thesis with buy ratings. Wedbush has set a $1,000 price target for Tesla stock amid the company’s strategy of diversifying its revenue base. Besides Tesla’s stock performance, people have been appreciating the rocket test that Musk’s Starship rocket SN8 company SpaceX plans to use for sending people to Mars. However, the rocket exploded in a test after successfully lifting off and flying several miles high on Wednesday. Related video: SpaceX prototype Starship rocket SN8 explodes during a test flight.
