JPMorgan Reaffirms Bearish Outlook on Tesla

by MarketNewsData

JPMorgan has reaffirmed its bearish outlook on Tesla, naming it a top short idea for the second half of 2025. The call comes with a reiterated Underweight (Sell) rating and a sharply reduced price target of $115 — implying over 60% downside from current levels.

The firm’s lead auto analyst, Ryan Brinkman, outlined multiple reasons for the negative view, combining valuation concerns, weakening demand, and leadership risk.

🔻 JPMorgan’s Bearish Thesis on Tesla

  • Overvaluation
    Tesla trades at over 140x forward earnings. JPMorgan argues the valuation is disconnected from fundamentals and unsupported by growth.
  • Margin Pressure
    Profitability is under pressure from ongoing price cuts and the reduction of EV subsidies in key markets like the U.S. and Germany.
  • Slowing Deliveries
    Tesla’s Q1 2025 deliveries fell about 8% year-over-year. JPMorgan expects further weakness in upcoming quarters.
  • Robotaxi & AI Skepticism
    The firm remains unconvinced by Tesla’s full self-driving and robotaxi ambitions, calling the timeline “uncertain” and commercially unproven.
  • Brand & Leadership Concerns
    Elon Musk’s political involvement and public behavior are seen as damaging to Tesla’s brand image. JPMorgan cited “unprecedented brand damage” impacting customer sentiment and sales.

📌 Note: JPMorgan Has Been Historically Bearish on Tesla

JPMorgan has long been one of the most skeptical major firms covering Tesla.

  • The firm has maintained an Underweight rating for several years.
  • Its price targets have consistently trailed far behind the market average.
  • JPMorgan has been critical of Tesla’s valuation, self-driving claims, and management style throughout the company’s rise.
  • Analyst Ryan Brinkman has consistently flagged risks others have overlooked, including delivery slowdowns, rising costs, and regulatory uncertainty.

Bottom Line: JPMorgan’s 2025 call to short Tesla is part of a much broader, long-running bearish thesis. While the stock has defied skeptics in the past, the firm believes the cracks are widening — and Tesla’s premium valuation may no longer hold up under pressure

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