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JPMorgan analysts lowered their price target for Tesla (TSLA) to $120 from $135 while maintaining its Underweight rating, citing declining consumer sentiment around the company and declining delivery numbers. Julie Hyman and Josh Lipton take a closer look at the analyst note.
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Let us check Tesla now, as our call of the day because JP Morgan lowers its price target on Tesla. They go from 120 to 135. Uh, the note coming amid a handful of cuts Elon Musk's company has gotten over the past week. So, uh, JP Morgan does reduce estimates, um, as they say consumer reaction toward the brand intensifies. They now see a second year of lower deliveries in '25 and a third year of lower EPS.
Yes. They say first quarter deliveries are going to fall, um, 8% year over year and something like 25%, um, quarter over quarter. To be fair here, Ryan Brinkman, the analyst who leads their coverage has had an underweight since February of 2015.
Mhm.
I don't know if you know what Tesla shares have done since February of 2015.
Yeah.
But they haven't gone down over that period of time. That said, of course, they have gone down recently. They're bouncing a little bit today, but this is just the latest analyst to come out with this call. The quote for me, he says, "We struggle to think of anything analogous in the history of the automotive industry in which a brand has lost so much value so quickly."
Right. Yeah. They explain their underweight rating like this. They say notable investment positive. They list them. They say, listen, highly differentiated business model, appealing product portfolio, leading edge technology. And then they say which we believe are more than offset by above average execution risk, rising competition, growing controversy with regard to the brand, and valuation that seems to be pricing in a lot.
Yes.