JPMorgan analysts lower price target for Tesla due to concerns over Musk's government ties.

From Nasdaq: 2025-03-13 11:57:00

Shares of Tesla (NASDAQ: TSLA) dropped 5% after JPMorgan analysts lowered their price target to $135, citing concerns over CEO Elon Musk’s involvement in government affairs. This decline marks a significant turnaround from the stock’s 90% surge after Trump’s election, now trading below pre-election levels.

Analyst Ryan Brinkman expressed astonishment at Tesla’s rapid loss of value, calling it unprecedented in the auto industry. He cut the firm’s price target from $231 to $135, projecting a 8% decline in deliveries to 355,000 this quarter. Brinkman attributed the negative sentiment to Musk’s controversial government ties.

Investors are cautious about Tesla’s future performance amidst negative sentiment towards Musk. With the stock trading at 86 times forward earnings, some see an unfavorable risk-reward proposition in the current market conditions. Analysts advise waiting for first-quarter numbers to gauge the impact of the negative sentiment on Tesla’s business.



Read more at Nasdaq: Why Tesla Stock Is in the Red Today