JPMorgan cuts its price target on Tesla shares and now sees a 32% downside after delivery miss highlights growth

Tesla CEO Elon Musk.Antonio Masiello/Getty Images

  • According to JPMorgan, Tesla shares are in for a world of hurt after the big delivery miss in the first quarter.

  • The bank lowered its Tesla price target from $130 to $115, which represents a potential downside of 31%.

  • “Even after a 59% drop, the valuation is still demanding,” JPMorgan said.

Tesla The stock is on thin ice after the EV maker reported a record delivery miss on Tuesday, according to JPMorgan.

Tesla reported vehicle deliveries in the first quarter of 386,810, well below Wall Street estimates of about 450,000.

JPMorgan reiterated its underweight rating on Tesla and lowered its price target to $115 from $130, representing a potential downside of 31% from current levels.

That bearish call comes after Tesla stock fell 60% from its all-time high in 2021. According to JPMorgan analyst Ryan Brinkman, that drop may not be enough.

“Even after a 59% decline, valuations are still demanding,” Brinkman said in a note on Wednesday.

Brinkman blamed it declining demand and intensifying competition due to Tesla’s sales problems, saying investors’ patience for the company could run out after a three-year recession.

“We are lowering our estimates and price target for Tesla stock following an update for Q1 24 deliveries, which were significantly softer than JPM and consensus expectations yesterday and which we estimate could pose issues for investor confidence in the company’s long-term growth prospects, which are so crucial to maintaining the stock’s rare valuation,” said Brinkman.

Brinkman said Tesla’s first-quarter deliveries missed analyst estimates by the largest amount ever, highlighting how big the company’s results were.

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