Tesla sales in Q1 can have been the worst for years, analysts warn the stock of 50%

JP Morgan even lowered its target for Tesla shares at only $ 120 at the end of the first quarter

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The rough patch of Tesla does not show signs of relaxation of soon, and the analysts are not optimistic, this will soon turn either. The last blow? JP Morgan suggests that Elon Musk’s current links with the Trump administration could continue to train Tesla, perhaps hammering its action and its sales figures in the first quarter.

Last week, JP Morgan reduced its forecasts for Deliveries from the first quarter of Tesla by 444,000 units already modest to only 355,000 units. It is not only below the previous estimates of JP Morgan, it is also well below the wider consensual expectation of 430,000 units. If these figures will hold, this would mark an 8% drop from one year to another compared to the first quarter of 2024.

Read: Tesla provides for a smaller Y model which is 20% cheaper to produce

Although the estimation of the delivery figures for a car manufacturer like Tesla can be difficult, things tend to drop for the EV brand. Until January and February, sales disappointed 44.4% in Norway and an even higher 70.6% in Germany. Similar declines have been reported in Australia and China, aggravating the pressure.

In the same investor ticket, JP Morgan reduced its target for Tesla shares to only $ 120, which represents more than a decrease of 50% compared to the $ 249 bar that it exchanged last week. Tesla’s market capitalization has already dropped approximately 49% since December, a free franchise with a maximum value of 1.54 Billion at less than $ 800 billion, Initiate of Business Notes.

JP Morgan’s car analyst Ryan Brinkman, clearly put it in a research note published on Wednesday, writing: “We have trouble thinking about everything that is similar in the history of the automotive industry, in which a brand has lost so quickly”, according to Fortunewho examined the note.

Musk’s political ties move the concerns of investors

JP Morgan says that the sudden drop in Tesla’s value is incomparable with any other moment in the history of the automobile, noting that Musk’s involvement in the government’s ministry of efficiency weighs heavily on the perceptions of the Tesla brand.

“Mr. Musk’s work with the government’s Ministry of Effectiveness has proven controversial at the national level, and although many members of the political right can be satisfied because those on the left are unhappy, the effect on Tesla sales nevertheless seems negative,” said analysts.

The growing discontent for Tesla is not only visible by downward sales, but also by recent demonstrations in the exposure rooms of the company, and an increase in vandalism on Tesla vehicles and the overeating stations not only in the United States, but also internationally.