Toxicity Tanking Tesla

@RalphHightower: I love it when a plan comes together.1

Tesla falls again after J.P. Morgan points to ‘unprecedented’ brand damage

Tesla (NASDAQ:TSLA) swung lower in early trading on Friday after J.P. Morgan slashed estimates on the electric vehicle maker, saying the trend in sales is worse than it appreciated and confirmed “unprecedented” brand damage.

The firm now expects Q1 EPS of $0.36 in comparison to its prior estimate of $0.40 prior and the consensus estimate of $0.45. The full year 2025 EPS estimate was reduced to $2.30 vs. $2.35 prior and $2.61 consensus. “Our earnings estimates are predicated in part on a lower outlook for deliveries (404K in 2Q25, down from 418K prior; 1,715K in FY25, down from 1,775K prior; and 1,975K in FY26, down from 2,025K prior),” highlighted analyst Ryan Brinkman.

J.P. Morgan kept an Underweight rating on Tesla (NASDAQ:TSLA) in place. Brinkman and his team see significant downside to the firm’s December 2025 price target of $120.

Seeking Alpha analysts have turned more bearish on Tesla (TSLA), with 7 of the last 8 ratings published at either Sell or Strong Sell.

Shares of Tesla (TSLA) were down 5.3% in premarket trading to $253.06 after shedding 5.5% on Thursday. In terms of market cap, Tesla (TSLA) is still valued by the market at more than Toyota (TM), Ferrari (RACE), General Motors (GM), Honda (HMC), Stellantis (STLA), and Ford Motor (F) combined.

  1. Lt. Col. John “Hannibal” Smith. The A-Team. CBS. 1983–1987 ↩

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