Tesla faces a potentially challenging first quarter, with analysts predicting a significant drop in sales and a possible stock plunge.
JP Morgan’s Bleak Outlook for Tesla
JP Morgan analysts anticipate Tesla’s Q1 deliveries to reach only 355,000 units globally. This projection represents an 8% year-over-year decline from Q1 2024. Furthermore, they suggest Tesla’s share price could plummet to $120.
Sales Figures Decline Across Key Markets
The report highlights a worrying trend for Tesla. January and February sales plummeted by 44.4% in Norway and a staggering 70.6% in Germany. Similar downward trends have been observed in Australia and China, adding pressure on the EV manufacturer.
Stock Value Concerns Mount
JP Morgan has slashed its price target for Tesla shares, indicating a potential 50% drop from recent trading values. Tesla’s market capitalization has already witnessed a substantial decrease, falling from $1.54 trillion to under $800 billion since December.
Analyst’s Perspective on Tesla’s Value Decline
According to Fortune, JP Morgan auto analyst Ryan Brinkman stated the rapid loss of value is unprecedented in automotive history.
Musk’s Political Ties and Brand Perception
JP Morgan suggests Elon Musk’s involvement with the Department of Government Efficiency may be negatively impacting the Tesla brand. This involvement has sparked controversy and could be influencing sales and overall perception.
Growing Discontent and Public Reaction
The report also notes growing discontent, reflected in protests at Tesla showrooms and increased vandalism targeting Tesla vehicles and Supercharger stations globally.