Tesla’s first-quarter car deliveries are expected to be its weakest since 2022, according to JPMorgan analysts. The company’s polarizing CEO Elon Musk is facing scrutiny from Wall Street due to his role in President Donald Trump’s administration.
JPMorgan has lowered its forecast for Tesla’s deliveries by 20%, predicting a total of 355,000 units, significantly lower than the consensus analyst projection of 430,000. This would mark the lowest deliveries since 2022’s third quarter and an 8% decline from last year’s first quarter.
The negative outlook is attributed to Musk’s “more divisive new role in government,” which has put Tesla under pressure. In particular, statements on the war in Ukraine, US participation in NATO, and far-right political parties have hurt sales in Europe.
Tesla’s struggles are also linked to the “shifting regulatory backdrop” under Trump, with potential rollback of electric vehicle tax credits further reducing demand for Teslas. JPMorgan’s share price target for Musk’s company is $120, representing a 50% downside from its current value.
Despite this bearish outlook, Tesla’s stock has rebounded recently, gaining 7.6%. However, shares are still down 39% year-to-date and 48% from their December all-time high. A recent CNN poll found that 53% of Americans hold a negative view on Musk, highlighting the challenges he faces in restoring investor confidence.
Source: https://www.forbes.com/sites/dereksaul/2025/03/12/jpmorgans-scathing-tesla-prediction-musks-car-company-will-report-worst-quarterly-deliveries-in-3-years