JPMorgan Analysts Predict Tesla’s Latest Decline May Mark a Historic Turning Point

Tesla’s value has plummeted dramatically, losing nearly half of its market cap in just a few months. This drop has sparked concerns around sales and the company’s leadership, particularly Elon Musk. Analysts at JPMorgan have remarked that the swift loss of value for Tesla is unprecedented in the automotive industry.

They pointed out that while other brands have faced similar drops during geopolitical tensions, such as Japanese and Korean automakers in 2012 and 2017, those situations were limited to specific markets. Tesla’s decline, meanwhile, spans globally. Recently, their price target was cut by 41%, dropping from about $230 to $135. This comes as they forecast a decrease in vehicle deliveries for early 2025.

Tesla’s market cap peaked at $1.54 trillion last year, but it’s now down to around $777 billion. As Tesla grapples with a global sales slump and its CEO’s controversial political engagements, the impact on its reputation is apparent. Recently, U.S. showrooms have seen protests, and vandalism incidents have raised alarms.

Interestingly, Musk’s political activities, especially his ties with the Trump administration, are also being scrutinized. Analysts believe this involvement might deter potential customers. Despite the challenges, Tesla continues to be the most valuable car company worldwide, outpacing Toyota’s $292 billion market cap.

Amid these struggles, Morgan Stanley mentioned that there are still opportunities for investors. They highlighted potential catalysts, like the upcoming release of Tesla’s robotaxi and advancements with the humanoid robot, Optimus. However, they cautioned that expectations might need to be realistic, given Musk’s history of missing deadlines.

Overall, while Tesla faces significant hurdles, including brand sentiment and market shifts, its innovations keep it at the forefront of the automotive sector. As we watch these developments unfold, the landscape for electric vehicles continues to evolve, with technology playing a crucial role in how companies navigate challenges.



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