Tesla has experienced a significant drop in value, prompting JPMorgan analysts to remark on the unprecedented nature of this decline in the automotive industry's history.
Historical Comparisons
JPMorgan analysts highlighted that the magnitude of Tesla's value loss is unparalleled, with past instances of Japanese and Korean car brands facing sales declines in specific markets due to diplomatic issues with China pale in comparison to Tesla's global sales decrease in 2025.
Price Target Adjustment
The analysts at JPMorgan revised Tesla's price target downward by 41%, now standing at $135, and anticipate a decrease in vehicle deliveries for the first quarter of 2025 to approximately 355,000 units, representing an 8% drop from the previous year.
Market Capitalization Plunge
Between December and the latest trading session, Tesla's market capitalization plummeted by almost 49%, falling from $1.54 trillion at the end of the previous year to around $777 billion.
Political Influence on Sales
Elon Musk's alignment with former President Donald Trump initially seemed beneficial to Tesla, but recent developments suggest otherwise. Musk's involvement with the Trump administration's cost-cutting initiatives has stirred controversy, potentially dampening Tesla sales.
Brand Reputation Concerns
Recent protests and vandalism at Tesla showrooms in the US, coupled with Musk's political engagements, have raised doubts about his focus on Tesla's core operations. Analysts are wary of the impact on Tesla's pricing and sales volume projections.
Future Prospects and Challenges
Despite the challenges, Tesla retains its position as the world's most valuable car company. Analysts point to upcoming catalysts such as Tesla's robotaxi launch in Austin and the unveiling of Optimus, a humanoid robot. However, concerns linger over Tesla's ability to meet delivery deadlines given Musk's track record.
While Tesla faces hurdles amidst its declining value and sales, analysts believe there may still be an opportunity for investors in the company.
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By: lloydlee@insider.com (Lloyd Lee)
Title: Tesla’s Value Plummets: Analysts Express Concerns Over Sales Decline
Sourced From: www.businessinsider.com/tesla-stock-decline-jp-morgan-analyst-guidance-2025-3
Published Date: Thu, 13 Mar 2025 02:37:48 +0000
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