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JPMorgan Slashes Tesla Price Target: Is the EV Giant in Trouble?

Wesley ParkWednesday, 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!
Comments

Post
Serious_Procedure_19
03/12
Competition's heating up, but Tesla's tech game could still be a game-changer. Keep an eye on that innovation curve.
0
Lurking_In_A_Cape
03/12
Musk's political moves are like a ticking time bomb. Who's got the stomach for this rollercoaster?
0
Lurking_In_A_Cape
03/12
@Lurking_In_A_Cape True, Musk's moves are risky. Investors need nerves of steel.
0
dritu_
03/12
@Lurking_In_A_Cape LOL, just hold on tight, bro.
0
haarp1
03/12
TSLA volatility screams "buyer beware" 🚨
0
THenrich
03/12
@haarp1 True, TSLA's been wild.
0
Comfortable_Corner80
03/12
JPMorgan bearish, but I'm holding long-term.
1
AGailJones
03/12
JPMorgan's bearish on $TSLA, but Morgan Stanley sees gold. Who's calling the shots here? 🤔
0
West-Bodybuilder-867
03/12
Holding $TSLA since '19, riding the wave up and down. My strategy? DCA and HODL, baby!
0
tostitostiesto
03/12
JPMorgan's bearish call got me thinking: time to buy the dip or stay in the safety net? 🤔
1
SuperRedHulk1
03/12
Musk's politics tanking TSLA more than deliveries.
0
Sgsfsf
03/12
Consumer backlash is real, but brand loyalty can be fierce. Some folks stick like glue, others jump ship fast.
0
zack1567
03/12
Musk's political plays are a double-edged sword – controversy sparks conversation, but harm hurts sales.
0
nrthrnbr
03/12
@zack1567 Controversy sells hype, but harm hits bag.
0
googo69
03/12
@zack1567 Musk plays chess while others play checkers.
0
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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