JPMorgan cuts its Tesla expectations after the company announced a $2.4 billion funding round — but says there's one big plus to the offering

But while JPMorgan is happy with Tesla's decision to finally raise capital, the dilution of new shares hitting the market is cause for lowering its already bearish estimates, the bank said. Looking forward, it expects Tesla to lose $0.85 per share in 2019, up from $0.75 previously. 2020 EPS estimates have been lowered to $5.85 from $6. But JPMorgan's price target remains $200, with an underweight rating on the stock.

Tesla will be"using some of the proceeds to enter into anti-dilutive hedging transactions and the majority for general corporate purposes, which we estimate has the potential to help put a floor under the stock over the near- to medium-term as liquidity concerns are likely to fade for now," the bank said.

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