Analysts at JPMorgan issued a stark warning about Tesla‘s stock, reiterating a sell rating and a price target of $145, which implies a potential 60% decline. The note highlighted concerns over disappointing delivery numbers and a shift away from autonomous vehicle development. Tesla’s stock has fallen nearly 20% year-to-date despite a recent 50% rally over the past year, illustrating a divergence between performance and market expectations.
Analysts at JPMorgan have expressed significant concerns regarding Tesla‘s current trajectory and stock valuation. The firm reiterated its sell rating on TSLA stock and maintained a price target of $145, forecasting a steep drop from current levels. Analyst Ryan Brinkman wrote in a note that the company’s delivery performance and strategic shift are causing harm.
*“With expectations for Tesla performance having collapsed for all financial and performance metrics… we advise investors to cautiously approach this expectation,”* Brinkman stated. This caution is based on execution risk and the time value of money. The firm’s assessment follows Tesla’s report of 358,023 vehicle deliveries for the first quarter.
That figure missed analyst estimates by roughly 7,600 units, falling short of a consensus near 365,645. Although deliveries showed a 6.3% year-over-year increase, the growth came from a depressed baseline. The absolute numbers also showed a significant sequential decline from the record-breaking fourth quarter of last year.
Other major Wall Street firms have also revised their forecasts downward following the report. Tesla stock fell 5.4% on Thursday after the delivery figures were released. Production for the quarter reached 408,386 vehicles, resulting in an inventory surplus exceeding 50,000 units and raising demand concerns. Energy storage deployments also declined sharply to 8.8 GWh.
Both Goldman Sachs and Truist cut their price targets for TSLA in response to the quarterly results. Both firms maintained their Hold ratings on the stock. At press time, TSLA is down almost 20% year-to-date, though it remains up 50% over the last 365 days.
