Analyst Gordon Johnson of GLJ Research maintained a Sell rating on Tesla, retaining the price target of $19.05.
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Gordon Johnson has given his Sell rating due to a combination of factors surrounding Tesla’s recent developments. The departure of the entire Dojo team, including its leader, to a new startup has raised concerns about Tesla’s ability to continue its in-house supercomputer project, which was a significant part of its valuation narrative.
This shift back to relying on external suppliers like NVIDIA, AMD, and Samsung, including a substantial chip deal with Samsung, suggests a retreat from the ambitious plans previously touted by Elon Musk. The abrupt change in strategy undermines the confidence in Tesla’s future technological advancements and the valuation attributed to them, leading to a more cautious outlook on the stock.
According to TipRanks, Johnson is an analyst with an average return of -5.5% and a 55.34% success rate. Johnson covers the Technology sector, focusing on stocks such as SolarEdge Technologies, Sunrun, and Daqo New Energy.
In another report released on July 28, J.P. Morgan also maintained a Sell rating on the stock with a $115.00 price target.