Tesla 's strong delivery numbers are not enough to change the big picture outlook for the stock, according to JPMorgan. On Saturday, Tesla reported 241,300 deliveries for the third quarter . That was well above the 220,900 expected by analysts, according to Street Account. The stock was rising in premarket trading Monday. JPMorgan analyst Ryan Brinkman, who has an underweight rating on the name, praised the company's execution during the quarter in a note to clients Sunday but stopped short of changing his investment view. "The better 3Q deliveries differentiate Tesla in comparison to other automakers, which have struggled to secure a sufficient supply of semiconductors, suggesting solid company-specific execution in this area as well as strong underlying demand," the note said. The auto industry has been one of the sectors most impacted by global supply chain issues during the coronavirus pandemic, as U.S. factory closures last year were followed by a worldwide semiconductor shortage that has slowed production. Brinkman raised his earnings estimates for Tesla and hiked his price target on the stock to $215 per share from $180. However, that new target is still more than 70% below where Tesla closed Friday. "While our new higher price target continues to imply material potential downside, we do not believe it is ungenerous, including as it values Tesla as the world's second largest automaker by market capitalization (behind Toyota and ahead of Volkswagen), which is just one notch down vs. its current (admittedly by far) #1 position despite it ranking as only the 18th largest automaker by unit volume," the note said. After being one of the best-performing stocks of 2020, Tesla has struggled in 2021. The shares have gained just under 10% year to date, trailing the broader market, but they have picked up steam in recent months. -- CNBC's Michael Bloom contributed to this report.
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Tesla's strong delivery numbers are not enough to change the big picture outlook for the stock, according to JPMorgan.