By Christiana Sciaudone
Investing.com -- Tesla (NASDAQ:TSLA) slid 2.3% after JMP downgraded the stock to market perform from market outperform on valuation. Shares have since pared losses and are trading slightly lower.
The electric car maker reports earnings on Wednesday. Shares have almost quadrupled since January, to more than $1,615. Tesla trades at a forward price to earnings ratio of 476, according to Yahoo (NASDAQ:AABA) Finance.
“The company’s valuation now slightly exceeds the $1,500 price target that we established recently, and we believe that any intermediate-term success that TSLA might discuss during its earnings call tomorrow is now fairly reflected in the stock price,” JMP analyst said, according to CNBC Pro. “We continue to believe that TSLA can become a $100 billion car company by 2025, but we cannot arrive at a reasonable basis for arguing that the stock should be valued above current levels, even considering our fundamental outlook.”
Tesla has seven buys, 10 holds and 10 sells, according to data compiled by Investing.com, with an average price target $969.42.