What Analysts Are Saying as Tesla Stock Gains 12% After Earnings Miss [Video]

Tesla (TSLA) shares jumped 12% to $162.13 Wednesday, a day after the company announced an accelerated production timeline for new products including an affordable electric vehicle (EV), despite the company’s earnings falling short of analyst expectations.

Analyst reactions following the EV maker’s earnings call varied, with Bank of America upgrading the stock to a “buy” rating, Wedbush lowering its price target, and JPMorgan raising concerns about the sustainability of the rise in Tesla’s stock price.

Bank of America analysts upgraded the stock to a “buy” rating from “neutral,” but maintained its price target at $220. They wrote the “results were better than expected which, coupled with management commentary, addressed key concerns heading into the quarter and revitalized the growth narrative.”

The analysts noted that Tesla “essentially knocked out the recent negative catalysts” including slow volume growth, thin margins, launch concerns, recent layoff news, and high inventories. Bank of America also …