Tesla is down sharply in 2026. JPMorgan sees the stock falling another 60%
CNBC • • business
Key Points:
- JPMorgan has reiterated an underweight rating on Tesla with a $145 price target, suggesting a potential 60% downside from recent closing prices due to a surge in unsold vehicles.
- The investment bank lowered its 2026 earnings per share forecast for Tesla to $1.80, down from $2, citing weaker-than-expected vehicle deliveries in Q1.
- Analyst Ryan Brinkman highlighted risks related to Tesla's expansion into higher volume, lower-priced segments, including demand, execution, and increased competition.
- Despite acknowledging Tesla's strong business model, product portfolio, and technology, JPMorgan believes these positives are outweighed by execution risks, competition, brand controversies, and high valuation.
- JPMorgan's cautious stance contrasts with broader market sentiment, where only 10 of 54 analysts have underperform or sell ratings, and Tesla shares remain up about 51% over the past year despite recent declines.
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