JPMorgan says electric car company Tesla has seen a record surge in unsold cars, and Tesla’s stock price is unlikely to rise any time soon. The investment bank reiterated its underweight rating on the EV maker and maintained its price target of $145. This represents a drop of about 60% from Thursday’s closing price. “We advise investors to approach TSLA stock with extreme caution,” analyst Ryan Brinkman said in a note. “Technology and execution risks both appear to be significantly lower than previously feared, but expansion into larger segments of the lower price range appears to carry greater risks relative to demand, execution and competition.” JPMorgan lowered its 2026 earnings per share outlook from $2 to $1.80, below consensus estimates, after Tesla’s lower-than-expected deliveries. Tesla delivered about 358,000 vehicles in the first quarter, lower than the roughly 370,000 expected by analysts surveyed by StreetAccount. The analyst added that JPMorgan’s ratings “consider notable investment positives, including a highly differentiated business model, attractive product portfolio, and cutting-edge technology.” However, these positive attributes are “offset by above-average execution risk, increased competition, increased brand controversy, and valuations that appear to be heavily priced in.” JP Morgan’s call goes against the consensus on the street. According to LSEG, only 10 of the 54 analysts covering Tesla rate the stock with an underperform or sell rating. The stock is down nearly 20% year-to-date, but is still up about 51% over the past 12 months.
