JPMorgan slashed its earnings forecasts for Tesla Inc. after the electric-vehicle maker’s disappointing first-quarter delivery numbers, warning of significant downside risk to the stock.
"We still see up to 60% downside for TSLA shares to our $145 December-2026 price target and advise investors to remain highly cautious on the stock," analyst Ryan Brinkman wrote in a note on April 6.
The bank lowered its first-quarter 2026 earnings per share estimate to $0.30 from $0.43. It also reduced the full-year 2026 forecast to $1.80 from $2.00 and the 2027 projection to $2.25 from $2.45, according to the note. The cuts follow Tesla's recent report of lower-than-anticipated vehicle deliveries for the first quarter.
Brinkman highlighted a disconnect between Tesla's rising stock price and sharply declining consensus earnings estimates for the rest of the decade. He advised investors to be mindful of "execution risk and the time value of money" given the high expectations embedded in the share price. The downgrade adds to a growing chorus of concern from analysts at firms like Morgan Stanley and Deutsche Bank regarding near-term production and profitability.
The forecast reduction from a major bank like JPMorgan could intensify selling pressure on Tesla's stock. Investors will be closely watching the company's official first-quarter earnings report on April 23 for details on margins and the production outlook for the rest of the year.
This article is for informational purposes only and does not constitute investment advice.
