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JPMorgan Cuts Tesla to Sell, Sees Up to 60% Downside After Q1 Delivery Miss

JPMorgan links its downgrade to fading U.S. EV incentives plus intensifying competition.

Overview

  • Tesoa shares fell for a second straight session Monday, wiping about $106.7 billion from its value and closing at $352.82.
  • Tesla delivered 358,023 vehicles in the first quarter, missing the roughly 372,160 that Wall Street expected.
  • Production reached 408,386 vehicles in the quarter, which ran well ahead of deliveries and points to inventory building up.
  • JPMorgan on Monday lowered its rating to sell with a $145 year-end price target and warned of as much as 60% downside from recent prices.
  • The bank said demand looks softer as U.S. purchase credits shrink and rivals crowd the market, and it projected weaker financial metrics through the rest of the decade.