Tesla Doubts Grow: JPMorgan Cuts Target to $195
Mike Mish Shedlock
The BBC reports Tesla Slips as Doubts Grow Over Elon Musk's Take-Private Plan.
>Shares in the electric car maker are down more than a fifth since he revealed the plan in a tweet on 7 August. Some analysts predict Tesla still has further to fall: JPMorgan Chase has cut its price target from $308 to $195.
>"Tesla does appear to be exploring a going private transaction, but we now believe that such a process appears much less developed than we had earlier presumed (more along the lines of high level intention)," said Ryan Brinkman at JP Morgan.
>The bank had raised its forecast following Mr Musk's tweet, which he later said was based on discussions with Saudi Arabia's sovereign wealth fund.
>However, Mr Brinkman said it was now clear that the fund's commitment remained uncertain: "Formal incorporation into our valuation analysis seems premature at this time."
I have a stake in this matter now. $195 would suit me quite fine if it happens soon enough. I got in on August 16 as noted in Initiated a Short Position in Tesla Yesterday: Luck of the Draw Interview Today.
I am still way out of the money on my $230 strike price, so for me, bad news on Tesla is welcome.
Mike "Mish" Shedlock