JPMorgan has revised its price target for Tesla (TSLA, Financial), projecting a decline in vehicle deliveries for the second consecutive year. The bank's analysts highlighted a shift in sentiment among existing and potential Tesla customers, partly due to CEO Elon Musk's political activities. These activities have reportedly led to protests at Tesla stores globally, sales boycotts, and a drop in resale value.
The financial institution has reduced Tesla's target price from $135 to $120, suggesting a potential drop of over 50% from its recent closing price of $248.09. This new target contrasts with the median Wall Street target price of $370, according to LSEG data.
JPMorgan anticipates Tesla will deliver approximately 1.78 million vehicles this year, marking a 1% decrease from 2024. Recent protests across the U.S., dubbed "Tesla Takedown," reflect dissatisfaction with Musk's involvement in government efficiency initiatives. In response, former U.S. President Donald Trump stated that violent actions against Tesla dealers would be labeled as domestic terrorism.
After reaching an all-time high last December, Tesla's stock has experienced significant volatility. It plummeted 15.43% on Monday, marking its largest single-day decline since September 2020, although it rebounded by 10% over the following two trading days.
