Tesla Falls 2.15% After JPMorgan Slashes Price Target by 60%

JPMorgan Chase, a leading U.S. investment bank, said Tesla shares could plunge as much as 60% from current levels. Tesla’s stock subsequently came under pressure.

On the 6th (local time), Tesla closed at $352.82 on the Nasdaq, down 2.15% from the previous session. The stock is down 19.46% so far this year, extending its weakness. On the day, the Nasdaq Composite rose about 0.54% to post a modest gain, but Tesla moved against the broader market.

The move appears to have been driven by JPMorgan’s decision to cut Tesla’s price target to $145 and issue an underweight recommendation. That implies the stock could fall about 60% by year-end from the prior close. Ryan Brinkman, a JPMorgan analyst who authored the report, stressed that “a high degree of caution is warranted on Tesla shares.”

He specifically pointed to a sharp increase in unsold inventory. Tesla said it delivered 358,023 vehicles and produced 408,386 in the first quarter of this year. According to the report, Tesla produced about 50,000 more vehicles than it delivered, building inventory on a larger scale than in any prior quarter.

Brinkman said Tesla’s production has risen 80% since the first quarter of 2023, while sales have fallen 15% over the same period, adding that the record surge in unsold inventory is exacerbating the strain on free cash flow.

He also argued that investor expectations are excessive. He noted that while Tesla deliveries peaked in early June 2022, the share price has jumped about 50% since then, interpreting the gap between the stock price and fundamentals as Wall Street pricing in an as-yet-unrealized narrative.

Intensifying competition in the EV industry, driven by the growth of lower-priced electric vehicles, was also flagged as a risk. JPMorgan therefore lowered its 2026 earnings per share (EPS) forecast for Tesla to $1.8 from $2.

Oh Hyun-ah, 5hyun@hankyung.com