Tesla stock: JP Morgan note pours cold water on sizzling rally

Tesla stock has risen too fast this year based on numerous uncertainties around

the EV maker's business, JP Morgan analyst Ryan Brinkman argues.

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"Tesla’s softer trend and below-consensus adjusted automotive gross margin comes

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before the impact of large price reductions that will primarily be felt beginning in the first quarter,"

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Brinkman said in a new client note. "As such, we view margin trajectory negatively and

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expect that consensus margin expectations are likely to decline."

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Brinkman reiterated an Underweight (sell equivalent) rating on Tesla shares.

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His $120 price target on Tesla assumes 32% downside from current levels.

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Shares of Tesla dropped slightly in premarket trading on Monday.

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The stock is up about 44% so far in 2023.

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