Tesla Stock Falls Again — JPMorgan Says Avoid Tesla at all Costs

This article first appeared on GuruFocus.

Tesla (NASDAQ:TSLA) shares continue to slide after JPMorgan reaffirmed its Underweight rating on the electric vehicle maker.

After Monday’s slump, Tesla shares fell more than 3% in Tuesday morning trading as well.

Analyst Ryan Brinkman pointed to weaker-than-expected first-quarter delivery numbers and a year-over-year decline in energy storage installations. The team now expects Tesla to report quarterly earnings per share of $0.30, down from a prior estimate of $0.43 and below the consensus forecast of $0.38, the note showed.

Brinkman said the firm sees roughly 60% downside to its $145 price target for December 2026. He advised investors to approach the stock with caution, citing execution risks and valuation concerns, according to the note.

The analyst noted that Tesla shares trade more than 50% higher than when delivery volume peaked in June 2022, despite sluggish growth in vehicle deliveries. JPMorgan said the company’s differentiated business model and technology may be offset by rising competition, brand controversy, and valuation that appears to price in substantial future growth.