UPDATE: JP Morgan Initiates Tesla Motors at Neutral on Valuation, Execution Risks

JP Morgan initiated coverage on Tesla Motors

with a Neutral rating and a $37 price target. JP Morgan said, "We initiate coverage on shares of Tesla Motors (TSLA) with a Neutral rating relative to our combined autos and auto parts coverage and establish a December 2013 price target of $37, suggesting +8% upside potential. Our Neutral rating balances notable investment positives – including a highly differentiated business model, appealing product portfolio, and leading-edge technology – with above-average execution risk and valuation that seems to be pricing in a lot." Tesla Motors closed at $34.40 on Monday.