Global investment bank JP Morgan has lowered its target price for Tesla to $120. This is about half the current stock price of $248.09. JP Morgan noted that Elon Musk, Tesla’s chief executive officer, may be a burden due to his political activities.
According to the financial investment industry on the 13th, Ryan Brinkman, a JP Morgan analyst, said this in a report the previous day. JP Morgan reduced its forecast for Tesla's vehicle shipments in the first quarter of this year (January to March) from 444,000 units to 355,000 units. This is a decrease of 8% compared to the same period last year and 28% from the previous quarter. The market expects Tesla's first-quarter shipments to be 418,000 units.
The biggest reason Brinkman lowered his expectations for Tesla is the so-called "Musk risk." He stated that Musk's political activities negatively impact the Tesla brand image. He said, "The exodus of Tesla’s customer base among the environmentally conscious Democratic supporters is notable."
He also diagnosed that sales are sharply declining in the European market due to Musk's comments related to the Russia-Ukraine war and NATO. In Germany, Tesla sales decreased by 59% in January compared to the same period last year and declined by 76% in February.
Opinions among securities firms regarding Tesla vary widely. According to Market Screener, a U.S. investment platform, among 48 securities firms, there are 15 buy opinions, 15 hold opinions, and 9 sell opinions. However, the average target price is $343.39, which is higher than the current stock price.