J.P. Morgan upgraded Tesla (TSLA) to Neutral from Underweight. The bank increased its price target by 227.6%. The new target is $475 per share. This marks a significant reversal from the previous $145 target.
Analysts based the valuation on long-term potential in autonomous driving, robotics, AI chips, and software. The firm prioritized these sectors over near-term electric vehicle sales. J.P. Morgan identified vertical integration as an under-appreciated advantage for earnings over the next decade.
Tesla shares traded marginally lower in early premarket activity on Friday. The market reaction remained muted despite the substantial price target hike.