JPMorgan warns Tesla stock could sink 60% in new note. Here's why.

00:01 Speaker A

Uh and as I, this was a savage note on uh Tesla here out from JP Morgan this morning and

00:06 Speaker A

you know, my my X-feed, I posted part of this note, my X-feed is going off. Uh and I just want to tell people, I did not write this note. Do not blame me for coming out with these comments, but again, a very bold call on Tesla from JP Morgan.

00:20 Anez

Yeah, from analyst Brian Ryan Brinkman. And he is saying that he he’s seeing a 60% drop in this stock because they have a price target of 100 and $45 on Tesla. Tesla right now is around 360. This is sort of an outlier because you have the street price target consensus of 415. But what he’s basically saying is is that the stock is wildly overvalued. He’s saying, we continue to see a large 60% downside to our 145 December 2026 price target and advise investors approach Tesla shares with a high degree of caution. He talks about mis-delivery estimates, unsold vehicles, which is putting pressure on free cash flow for the company. And also talking about, okay, fine, Tesla is pivoting. We know that they have pivoted towards humanoid robots, towards robo taxis. But this analyst is talking about an alter timeline because he’s saying it’s similar to Tesla’s saying that there were going to be a million Tesla robo taxis on the road by April 2020. So he’s really calling into question uh Elon Musk’s timeline here.

01:23 Speaker A

Tom, I know you want to get into the uh the swamp with me on all things Tesla stock. Are you a big fan of this company?

01:30 Tom

So, I I think that Tesla gets, sort of the analysis on Tesla gets lost a bit in the narrative, right? I mean, if if we’re looking at Tesla as a car company, then yes, it’s wildly overvalued and it could easily fall 60%. For me, if you’re going to get really bearish on Tesla, there has to be some sort of material change to explain how this company is is not a technology company anymore and they are going to epically fail at their robo taxi and and robots and things like that. And and I didn’t see that in this report. So, to a point, you know, Tesla’s always been a high risk, high return stock because it’s not a car company. The car company is just part of the technology that ultimately gets them to to where they want to be on robo taxis. So, I don’t see this report as a as a game changer. Uh, until someone comes out and says they are going to fail at robo taxis and robots and here are credible reasons why. I think that the people who love it are going to continue loving it and they’ll look to be buying it on dips.