Tesla Must Reckon with a ‘Material Collapse’ in Performance Ahead of Earnings. What Will the Outcome Be for TSLA Stock?

Financial major JPMorgan remains downbeat about Elon Musk-led EV (and increasingly AI) company Tesla (TSLA). Citing risks surrounding increased competition, a decline in deliveries, questions around execution, and diminishing brand value, the Wall Street institution has reiterated its “Underweight” rating on the stock ahead of its Q1 earnings.

In a note to clients, the firm said, “We continue to see large -60% downside to our $145 December 2026 price target and advise investors to approach TSLA shares with a high degree of caution, mindful of execution risk and the time value of money within the context of the materially stronger distant out-year earnings expectations implied by the rise in TSLA share price that has occurred alongside a material collapse in consensus for all performance metrics through at least the end of the decade.”