JPMorgan has upgraded Tesla to Neutral after maintaining bearish calls on the electric-vehicle maker for eight years. The Wall Street bank also raised its price target on Tesla to $475, signaling a shift in its long-standing skepticism.
Eight-year streak of sell ratings
JPMorgan had recommended selling or underweighting Tesla shares for eight consecutive years, making it one of the most consistently negative voices on Wall Street. The upgrade to Neutral marks a significant reversal in the bank's outlook. Analysts at JPMorgan now rate Tesla as having a more balanced risk-reward profile, though the Neutral rating still implies they expect the stock to perform roughly in line with the broader market.
Price target raised to $475
Alongside the rating change, JPMorgan lifted its price target for Tesla to $475. The new target reflects a more favorable view of the company's valuation and prospects compared to previous estimates. The bank's analysts revised their assessment of Tesla's business, factoring in recent developments in the auto sector and the company's financial performance.
The move comes as Tesla continues to navigate a competitive electric-vehicle landscape and fluctuating demand. JPMorgan's eight-year bearish run had been a notable outlier among bank ratings, and the upgrade brings it more in line with the consensus on Wall Street, where many analysts have been more bullish on Tesla.
The upgraded rating and higher price target were detailed in a note to clients. Investors will watch whether other banks follow JPMorgan's lead in adjusting their views on Tesla.
