Sell Your Tesla Shares: JP Morgan
At least one investment banking company is saying to sell Tesla shares before it’s too late.
J.P. Morgan has reaffirmed its underweight rating on Tesla shares, saying the American automaker’s sales will suffer once other luxury automakers get their electric vehicles released. “Tesla has, to date, faced relatively little competition in the market for luxury electric vehicles, and so we think shoppers have been willing to cut the automaker some slack when it comes to some aspects of service and build quality,” analyst Ryan Brinkman wrote in a note to clients. “When similarly priced high-end long-range electric vehicles become available from prestigious brands with strong reputations for both service and build quality, we believe this could represent a meaningful headwind for Tesla.”
SEE ALSO: Tesla Will Run Model 3 Production 24/7 Until June
Audi, BMW, and Mercedes-Benz are all readying electrified vehicles in the coming months, and Jaguar has already gotten a headstart with the new I-Pace. Mercedes-Benz has announced it will launch 10 battery-powered electric vehicles by 2022, part of its new EQ sub-brand initiative.
The American automaker has gotten plenty of attention in recent months, as it continues to struggle ramping up production for its more affordable Model 3 sedan.
[Source: CNBC]
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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