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Geoffrey Seiler, The Motley Fool
Tue, June 9, 2026 astatine 8:55 AM CDT 3 min read
When it comes to Tesla (NASDAQ: TSLA), J.P. Morgan has agelong been 1 of the astir bearish concern firms connected Wall Street. However, that precocious changed erstwhile it switched sum to a caller expert and upgraded the stock.
With Rajat Gupta taking implicit for vocal Tesla carnivore Ryan Brinkman, the caller expert took the banal from underweight to neutral and raised the stock's terms people from $145 to $475. Notably, the upgrade and immense boost successful terms people travel conscionable up of J.P. Morgan receiving a large payday from the SpaceX archetypal nationalist offering (IPO). Tesla and SpaceX stock a CEO successful Elon Musk, and J.P. Morgan has been aggressively pitching the IPO to its clients to make much involvement successful the monolithic offering.
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Gupta said that portion Tesla banal trades astatine a frothy valuation, it has "unique advantages" owed to its beardown vertical integration betwixt hardware and software. He said this is inactive mostly misunderstood and that the institution is astatine the forefront of carnal artificial quality (AI). He sees the institution having a $3.9 trillion accidental betwixt robotaxis, humanoid robots, electrical vehicles (EV), vigor storage, and infrastructure licensing.
Is the banal a buy?
The timing of the J.P. Morgan upgrade comparative to the SpaceX IPO surely raises questions astir the firm's information for the abrupt alteration of tune. Brinkman had covered the banal since 2015 and was a accordant bear, mostly viewing the institution done the lens of its superior automotive business. From this perspective, the concern has ever had a ridiculous valuation compared to different automaker stocks, and it was nether a batch of accent past twelvemonth aft Musk alienated galore consumers with his foray into politics, not to notation the extremity of national EV subsidies.
Gupta is present utilizing the tried-and-true bullish statement that Musk is simply a visionary and that the institution has immense opportunities crossed assorted areas. Of course, Musk has a long, documented past of overpromising and underdelivering with autonomous driving and robotaxis, portion astatine an lawsuit successful 2024, its Optimus robots were criticized for being tele-operated by humans. There is nary warrant that immoderate of these "opportunities" volition cookware out.
Tesla has ne'er truly traded connected its fundamentals, and that remains the lawsuit today, with the banal trading astatine a guardant P/E of astir 200. I'd ne'er suggest buying a banal solely connected hopes and dreams, and with the SpaceX IPO, determination volition soon beryllium 2 Musk-based stocks trading solely connected large aspirations. If the marketplace can't sorb 2 of these types of stocks, it could wounded the show of both.
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