JPMorgan has warned ahead of time that Tesla ( TSLA.US) stock price could plunge by 60% as prices may crash violently.

LootboxPhobia · 2026-04-07T05:38:24+00:00

JPMorgan reiterates a "Reduce" rating on Tesla, with analysts forecasting first-quarter earnings per share below market expectations and predicting Tesla's stock price could drop by 60%. Despite positive factors, execution risks and intense competition still require investors to remain cautious.

LootboxPhobia

2026-04-07 05:38:24

Abstract generation in progress

Zhitong Finance APP learned that ahead of Tesla (TSLA.US) releasing its first-quarter earnings report, JPMorgan, which has long been bearish on the electric-vehicle and autonomous-driving company, reiterated its “sell” rating on Monday.

Analyst Ryan Brinkman noted that Tesla’s first-quarter delivery report underperformed, and that the number of energy-storage equipment installations also fell year over year. Brinkma and his team currently expect Tesla to earn $0.30 per share in the first quarter, which is below the prior expectation of $0.43, while the market consensus is $0.38.

Brinkman said: “We still believe Tesla’s stock price will decline 60%, to our $145 target price for December 2026, and we advise investors to remain highly cautious about Tesla shares. While Tesla’s rising stock price reflects a significant increase in the market’s expectations for its profitability over the next few years, at the same time, at least through 2030, the general expectations for all performance metrics have fallen significantly. Therefore, investors should fully factor in execution risk as well as the time value of money.” He added that despite the lackluster delivery growth, “it is unbelievable that” Tesla’s current stock price is still more than 50% higher than when deliveries reached their peak in June 2022.

Looking ahead, JPMorgan believes that Tesla’s investment positives—such as its highly differentiated business model, attractive product lineup, and leading technology—cannot fully offset the impact of its execution risk that is higher than the average, intensifying competition, ongoing controversies surrounding its brand image, and the effects brought by valuation.

It is reported that Tesla will release its first-quarter earnings report on April 22. With first-quarter deliveries falling short of expectations, Tesla’s stock has recently trended lower. The stock fell more than 2% on Monday to $352.82, down 22% year to date.

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