JP Morgan has slashed its delivery forecast for Tesla by 20% to 355,000 units for the first quarter, citing a drop in sales due to Elon Musk’s actions. The investment firm now predicts that Tesla stock will fall to $120 per share, a level not seen since January 2023.
The steep decline in Tesla’s share value has been attributed to Musk’s erratic behavior, including his comments on Twitter and his influence on global politics. His remarks have alienated potential customers and existing owners, leading to a significant drop in sales in Canada, with some reports suggesting a 70% decline.
Tesla faces increased competition from rivals in China, where local brands such as BYD are gaining popularity due to their more efficient cars and better technology at lower prices. Even younger buyers are turning away from Tesla, preferring Chinese brands like Xia Lifang’s company.
JP Morgan is not the only investment firm predicting weaker sales ahead for Tesla. UBS Group analyst Joseph Spak recently lowered his projection for Tesla production in 2025, contributing to Tesla shares having their worst day since September 2020.
The financial community views Tesla’s decline as unprecedented, with JP Morgan stating that the company has lost “so much value so quickly” that it is a rare occurrence in the automotive industry.
Source: https://cleantechnica.com/2025/03/16/jp-morgan-slashes-tesla-sales-forecast-predicts-stock-will-fall-to-120-per-share