JPMorgan Removes Sell Rating on Tesla After Years, Says It’s at the ‘Forefront of Physical AI’ JPMorgan has upgraded Tesla’s stock rating to ‘neutral’ from ‘underweight,’ ending a sell rating that began in July 2023. The investment bank highlighted Tesla’s integrated supply chain and artificial intelligence capabilities, particularly how its automotive factories can serve as testbeds for its Optimus humanoid robots. This upgrade occurs as Elon Musk’s other company, SpaceX, is preparing for a highly anticipated IPO on June 12, targeting a $1.8 trillion valuation.

• JPMorgan upgraded Tesla’s stock rating to ‘neutral’ from ‘underweight,’ previously a ‘sell’ rating since July 2023.
• The upgrade is attributed to Tesla’s vertically integrated supply chain and artificial intelligence capabilities.
• Tesla’s automotive factories are seen as a testbed for its Optimus humanoid robots, potentially reducing costs and validating the product at an industrial scale.
• SpaceX, another Elon Musk company, is set to have its IPO on June 12, aiming for a $1.8 trillion valuation.
• Stock indexes are re-evaluating inclusion rules ahead of large IPOs, including SpaceX, OpenAI, and Anthropic.
• S&P Dow Jones Indices will not change entry requirements, denying SpaceX expedited index inclusion, while Nasdaq and FTSE Russell have made rule changes easing entry.
• There is speculation about a potential merger between SpaceX and Tesla, which could create a $3.5 trillion company.