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Published on October 23rd, 2019 | by Zachary Shahan

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3 Banks Funding Fossil Fuels The Most Are Tesla [TSLA] Bears

October 23rd, 2019 by  


Thanks to some work by Rainforest Action Network and The Guardian, as well as a post from a member of a Tesla forum, I recently wrote an article highlighting that the #1 fossil fuel development financier happens to also be an extreme Tesla [TSLA] bear.

A certain tweeter looked a little deeper than that and noted in a tweet tagging me that it’s not just the #1 fossil fuel financier that has analysts who are very critical of Tesla and pessimistic about its future — it’s the top 3. Each of the 3 financial firms that lay out the most money for fossil fuel developers have a relatively low Tesla [TSLA] price target.

Directly behind JPMorgan Chase, which I previously noted provided the most money (by far) for fossil fuel development, there are Citi and Bank of America.

As Twitter user “Not_an_Analyst” points out, these financial companies’ Tesla analysts are extremely pessimistic about TSLA and recommend selling the stock. Here’s another look at their current buy/sell graphs for Tesla.

Those graphs give a sense of what these analysts think about the company, but how about a look at their Tesla price targets? From that big graph of analyst price targets for TSLA that Chanan created, here’s Bank of America’s price target over time (thick red line):

Citi’s price target for TSLA is $191, even lower than JPMorgan’s $200. Bank of America’s price target is $225. Here’s a chart of the various TSLA price targets at the moment:

The three banking giants are not at the very bottom of the analyst price targets, but they are each in the lower half of the chart.

I’m not a big fan of wild conspiracy theories, and I don’t think these three banks have bearish analysts simply because they also finance fossil fuel development. Theoretically, those arms of the financial firm are completely separate and never interact — I’d assume that’s the case. I don’t think the analysts are getting cash on the side or a wink & a nod from management in order to put out a pessimistic forecast. (In other words, without some clear proof of corruption, I’m going to assume people are doing their jobs honestly.)

However, I am very curious how it is that these banks are on the polluting end on both Tesla forecasts and fossil energy financing. A PhD thesis could be done on understanding Elon Musk’s critics and the culture/subculture they live in. Is there a subculture in the financial world that is pro-pollution and anti-Tesla? Is there an overarching “business as usual” bias? Or — gasp — is there actual soft corruption on this topic on Wall Street? Do certain talking points just get pushed out thousands of times a day and those closer to the source are more commonly influenced by them? Is it all pure coincidence?

Any more thoughts or questions about these banking firms and their role in pushing anti-Tesla talking points forward? 
 

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About the Author

is tryin' to help society help itself one word at a time. He spends most of his time here on CleanTechnica as its director, chief editor, and CEO. Zach is recognized globally as an electric vehicle, solar energy, and energy storage expert. He has presented about cleantech at conferences in India, the UAE, Ukraine, Poland, Germany, the Netherlands, the USA, Canada, and Curaçao. Zach has long-term investments in Tesla [TSLA] — after years of covering solar and EVs, he simply has a lot of faith in this company and feels like it is a good cleantech company to invest in. But he does not offer (explicitly or implicitly) investment advice of any sort on Tesla or any other company.



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