JPMorgan Slashes Tesla Price Target: Is the EV Giant in Trouble?
Wednesday, Mar 12, 2025 4:36 pm ET
4min read Ladies and gentlemen, buckle up! We're diving headfirst into the electric vehicle (EV) market, where tesla (NASDAQ: TSLA) is facing a storm of consumer backlash and Wall Street pessimism. jpmorgan just slashed its price target for Tesla, and the market is on edge. Let's break it down!
JPMorgan's Bearish Bet
JPMorgan's analyst Ryan Brinkman just lowered his price target for Tesla from $135 to $120, reiterating an 'Underweight' rating. That's a 51% drop from Tesla’s current valuation! Brinkman cited a sharply lower delivery outlook, driven by waning demand and mounting consumer backlash against the brand. He warned that this sentiment shift could further damage Tesla’s brand and impact future sales. JPMorgan now expects Tesla’s Q1 2025 deliveries to hit just 355,000 units, an 8% year-over-year decline and a staggering 28% drop from the previous quarter. This projection is 15% below Bloomberg’s consensus estimate of 418,000 deliveries, underscoring the severity of Tesla’s demand slump.
Consumer Backlash: The Musk Factor
Elon Musk's political affiliations have led to customer protests, sales boycotts, and a rise in secondhand vehicle owners offloading their Teslas. A recent Morgan Stanley investor survey found that 85% of respondents believe Musk’s political activities are damaging Tesla’s business fundamentals. The survey also indicates that 59% of respondents foresee a year-over-year drop in Tesla’s 2025 deliveries, with only 19% anticipating any growth. This decline in consumer sentiment and the resulting drop in deliveries pose a significant threat to Tesla’s competitive advantage in the EV sector.
Wall Street's Mixed Bag
While JPMorgan is bearish, other analysts are more optimistic. Morgan Stanley’s Adam Jonas reaffirmed Tesla as the firm’s top automotive pick, maintaining an 'Overweight' rating and a $430 price target. Despite weak deliveries, he sees Tesla evolving into a diversified tech company leveraging AI and robotics, with a bullish case projecting an $800 stock price. Wedbush’s Dan Ives defended Tesla amid its slump, calling it a “gut check moment” for investors. He reiterated his 'Outperform' rating and maintained his Street-high $550 target.
TSLA Interval Closing Price
| Name |
|---|
| Date |
| Interval Closing Price(USD) |
| TeslaTSLA |
| 20220311-20250311 |
| 230.58 |
What's Next for Tesla?
Tesla is at a crossroads. It remains a leader in the EV space, but its challenges—from Musk’s political controversies to declining sales and rising competition—are mounting. The next few months will be critical in determining whether Tesla regains its footing or continues to face a rough road ahead into 2026 and beyond.
Do This!
If you're a Tesla investor, stay vigilant. Keep an eye on consumer sentiment and delivery numbers. If Tesla can course-correct and mitigate the negative effects of Musk's political involvement, it could still be a winner. But if the backlash continues, it might be time to reassess your position.
Stay Away!
If you're not already invested in Tesla, tread carefully. The market is volatile, and the risks are high. Tesla's stock has been on a rollercoaster ride in 2025, with investors reacting sharply to Musk’s political controversies and the company’s business struggles. Recent movements include a 15% drop, marking Tesla’s worst performance in five years, and a 6.5% rally after Musk’s appearance at a political event alongside former President Trump.
Boo-yah!
Tesla is a company with immense potential, but it's facing significant headwinds. The market hates uncertainty, and Tesla is swimming in it. But if you believe in the company's long-term vision and its ability to innovate, now might be the time to double down. Just remember, this is a high-stakes game, and the market is a fickle beast. Stay informed, stay alert, and stay ahead of the curve!
Final Thoughts
Tesla's future looks complicated, but it's not all doom and gloom. The company has a strong foundation in battery technology, charging infrastructure, and software. If it can navigate the current storm and course-correct, it could still be the king of EVs. But for now, the road ahead is bumpy, and the market is watching closely. So, buckle up, folks! It's going to be a wild ride!
