Categories: Business

Why are Tesla’s actions rally despite the profits that are lacking? JPMorgan Putzulled – Tesla (Nasdaq: TSLA) analyst)

Tesla Inc. Tslabelonging to Elon Muskexperienced an 8% increase in its actions after a Miss of profits, leaving JPMorgan analysts scratch their heads.

What happened: Jpmorgan analyst Ryan Brinkman was left perplexed by the performance of Tesla’s actions. Despite a deficit of 38% of the benefits before interest and taxes and the lowest profit margin for years, Tesla’s shares have soaked.

According to the Market Insider report, Brinkman offered several theories for the increase in the title, including the ambitious projections of the CEO Elon Musk when the profits are called. However, he remained skeptical, by maintaining his price target of $ 135 for Tesla, indicating a potential of 68% of the current levels.

“This higher decision in Tesla’s actions did not experience any relation to the financial performance of the company during the quarter which has just been completed or to its growth prospects in the coming year,” said declared Brinkman at the point of sale.

On Wednesday, Tesla declared its first annual sales decrease since 2008, with a turnover in the fourth quarter of $ 25.7 billion, missing estimates of $ 1.4 billion and a profit per share of 0.73 $, missing estimates of $ 0.02.

Read then: Cuban on Musk: “ I have no problem throwing Elon under the bus, but I will record it when it is really deserved ”

Brinkman also expressed his concern concerning Tesla’s directives for a return to growth in 2025, noting that the objectives of financial prices and analysts of the company seem to evolve in opposite directions.

“Tesla’s actions continue to strike us as having become completely divorced from fundamental principles,” concluded Brinkman.

Why is it important: The unexpected rally of Tesla’s shares despite Miss’s profits raises questions about the factors that stimulate investors’ feeling. Although Brinkman’s analysis indicates a disconnection between the financial performance of the company and its stock market course, the market seems to react to other factors, including the ambitious growth projections of the CEO Elon Musk.

While Tesla discusses the challenges of missed profuses and a declining sales trend, the market response will continue to be closely monitored.

The divergence between the price objectives of analysts and the actual stocks of stocks highlights the complexities of the current investment landscape.

Read

Elon Musk faces criticism from the biographer about Auschwitz’s visit: “He is really a sociopath”

Image: Shutterstock

This content was partially produced with the help of AI tools and was examined and published by Benzinga Editors.

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