According to a report in The Guardian, the top banker for fossil fuel companies is JPMorgan Chase. In fact, in the past few years it has provided $22.8 billion more in financing than #2 Citi for large-scale oil, gas, and coal companies — $75.6 billion versus $53.8 billion.
That’s a lot of cash expecting some money back from oil, gas, and coal development. For some perspective, Tesla’s market cap is currently at $46.2 billion.
JPMorgan, incidentally, is also a major Wall Street bear on Tesla [TSLA]. Now, I’m not saying there’s a direct link between the financing arm of JPMorgan and the investment analyst arm. I don’t assume without real evidence that they are in cahoots. However, as one Tesla fan noted, JP Morgan’s Tesla analyst, Ryan Brinkman, does have a very low price target in place for Tesla and an “underweight” rating.More than anything, I’m curious about the corporate culture at JPMorgan and how the analyst arm relates to the rest of the business. I don’t want to make judgements based on unfounded assumptions, but I find it interesting that the #1 fossil banker is also one of the most pessimistic firms when it comes to Tesla. Also, while I have been known to be naive from time to time, my understanding is that Wall Street is not overflowing with boy scouts. To the contrary, there’s a lot of legal and illegal shady business underway in the financial capital of the world. Is it possible JPMorgan analysts know that JPMorgan is very pro-fossil fuels and that it’s not wise to have a bullish stance on cleantech companies at the firm? Maybe. Maybe not.
What is clear, however, is that JPMorgan Chase in more ways than one is bullish on dirty energy, not clean energy and electric cars. Perhaps give it some consideration when thinking about where to bank (really) and which credit cards to use.
If you’d like to buy a Tesla Model 3 and want 1,000 miles of free Supercharging, feel free to use my referral code: https://ts.la/zachary63404 — or use someone else’s if you have a friend or family member with a Tesla. I won’t cry.
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