Tesla is unlikely to go higher anytime soon as the electric vehicle company sees a record surge in unsold cars, according to JPMorgan. The investment bank reiterated its underweight rating for the EV maker and maintained its $145 price target. That implies roughly 60% downside from Thursday’s close. “We … advise investors approach TSLA shares with a high degree of caution,” analyst Ryan Brinkman said in a note. “Although both technology and execution risk seem substantially less than was once feared, expansion into higher volume segments with lower price points seems fraught with greater risk relative to demand, execution, and competition.” JPMorgan lowered its forecast for the company’s earnings per share outlook in 2026 to $1.80 from $2, below consensus estimates, after Tesla delivered less vehicle than expected. Tesla delivered around 358,000 vehicles in the first quarter , below the roughly 370,000 analysts polled by StreetAccount anticipated. The analyst added that JPMorgan’s rating “considers notable investment positives, including a highly differentiated business model, appealing product portfolio, and leading-edge technology.” However, those positive attributes are “more than offset by above-average execution risk, rising competition, growing controversy with regard to the brand, and valuation that seems to be pricing in a lot.” JPMorgan’s call goes against consensus on the Street. Of the 54 analysts covering Tesla, just 10 have an underperform or sell rating on the stock, per LSEG. Shares have fallen nearly 20% in the year to date, although the stock is still up roughly 51% over the past 12 months.
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