Bank Warns of Tesla Stock Collapse by 60%

This article first appeared on GuruFocus.

Tesla (NASDAQ:TSLA) shares in focus after JPMorgan kept a Sell rating and a $145 price target, a level that suggests roughly 60% downside from recent trading.

The bank said the stock’s recent move reflects expectations for much better performance later in the decade, according to a Monday note from JPMorgan.

Analyst Ryan Brinkman said investors should factor in execution risk and the time value of money before betting on that longer-term rebound. Tesla shares are already down about 20% this year and remain well below the average analyst target near $360.

The warning follows first-quarter deliveries of 358,023 vehicles, which missed Wall Street estimates of roughly 369,000 units. Reuters reported the result was Tesla’s weakest quarter in a year and came as U.S. demand softened, the federal EV tax credit expired and competition intensified from BYD and other automakers.

Tesla is still leaning on new product plans to support the story. Chief Executive Elon Musk has pointed to the Cybercab robotaxi and the Optimus humanoid robot as future growth drivers, but analysts say those efforts still face execution and demand uncertainty.