JPMorgan can't understand why in the world Tesla would be up after earnings

Analysts: they’re just like us. Namely, the fine folks over at JPMorgan, much like at Barclays, seem equally mystified as we are that Tesla’s stock could be trading up so much after reporting such dismal earnings. From a research note today:

“It’s not clear to us why Tesla shares traded as much as +5% higher in the aftermarket Wednesday, although we have some leading theories. Perhaps it was management’s statement that it had identified an achievable path to becoming worth more than the world’s five most valuable companies taken together (i.e., more than the $14.8 trillion combined market capitalizations of Apple, Microsoft, NVIDIA, Amazon, & Alphabet). Or maybe it was management’s belief that just one of its products has by itself the potential to generate ‘north of $10 trillion in revenue’. It may have even related to management guidance for 2026 (no financial targets were provided, but it was said to be ‘epic’) and for 2027 and 2028 (‘ridiculously good’).”

They added:

“What does seem clear is that the move higher in Tesla shares bore no relation whatsoever to the company’s financial performance in the quarter just completed or to its outlook for growth in the coming year.”

As we’ve noted, CEO Elon Musk is doing his best to point investors toward Tesla’s other ventures —  robots, AI, autonomous ride hailing, solar roofs — that is, everything besides its struggling electric car business.

For what it’s worth, JPM says fundamentals will “eventually matter” and is predicting a 65% downside to the current share price.