Tesla’s market capitalization plummeted by 48% in recent months due to sagging sales and leadership concerns, particularly with CEO Elon Musk. Analysts at JPMorgan have expressed difficulty finding a comparable historical case, as Tesla’s decline is not limited to any specific nation or geography.
The company’s sales have been in a global decline, and branding issues have arisen from Musk’s politics. A recent shift in the Trump administration has raised concerns about demand for Tesla products. Protests at US showrooms and vandalism incidents have further strained brand reputation.
Analysts at JPMorgan argue that Musk’s focus on political affairs is distracting him from his core businesses. The company’s takeover of X, a social media platform formerly known as Twitter, may also be contributing to the decline.
Despite this, Morgan Stanley analysts see buying opportunities in Tesla, citing the company’s pipeline of promising projects, including its robotaxi and humanoid robot Optimus. However, tempered expectations for delivery timelines are necessary due to Musk’s history of missing deadlines.
Tesla remains the world’s most valuable car company, with a market cap second only to Toyota at $292 billion. The CEO’s future leadership will be closely watched by investors and analysts.
Source: https://www.businessinsider.com/tesla-stock-decline-jp-morgan-analyst-guidance-2025-3