- About 48 % of the market value in Tesla was eliminated within months.
- This decrease comes amid the hanging sales and concerns about the leadership, that is, its CEO Elon Musk.
- JPMorgan analysts said they could not find “anything similar in the history of the auto industry.”
Tesla has lost a lot of value in a short period of time.
They wrote: “We are struggling to think about anything similar in the history of the auto industry, as the brand lost a lot of value very quickly,” adding that the closest example is when Japanese and Korean brands lost sales amid “diplomatic conflicts” with China in 2012 and 2017, respectively.
JPMorgan analysts wrote in a memorandum on Wednesday that these historical cases “were confined to one market, while the decrease in Tesla sales in 2025 is not specific to any nation or one geography.”
JPMorgan analysts reduced their target price on Tesla by about 41 % from 230.58 dollars to $ 135, which reduced directives about the delivery of vehicles for the first quarter from 2025 to about 355,000-by 8 % on an annual basis from the first quarter of 2024.
Between December and Wednesday, after the trading hours, Tesla lost approximately 49 % of the maximum market, with a peak value of $ 1.54 trillion from the end of last year to about 777 billion dollars.
This sharp decline comes as Tesla faces a global decrease in sales and brands caused by the CEO.
For a moment, Elon Musk’s great bet on Donald Trump began to pay off. Tesla was the only EV company that sees the rise of shares after the election president’s victory in November. The primary assumption seems to be that Musk can benefit from it if the CEO of Tesla has the ear of the new administration and led the White House efforts to reduce government spending.
Now, this assumption is challenged in the latest guidelines for some analysts, which notes possible winds in the request due to Musk’s work with the Trump administration.
“Mr. Musk’s work with the Ministry of Government efficiency has proven to be locally controversial, and although many members of the political right may be happy because those on the left are upset, the influence of sales of Tesla seems negative.”
In recent weeks, Tesla showrooms throughout the United States have seen protests and a series of sabotage. President Trump rushed to the defense of Tesla and said he would consider describing the local terrorist perpetrators.
Outside the brand’s reputation, some analysts are also concerned that Musk’s focus on political affairs once again spends the CEO of his basic work.
“After all, the simultaneous decline in both Tesla pricing and the expectations of the unit’s volume of storage coincided with its seizure of X, the social media platform previously known as Twitter.”
Morgan Stanley analysts wrote in a Monday note that Tesla shares have decreased due to “sales data, negative brand morale, and market removal” but still see the opportunity to buy for the company.
Analysts said: “Today, with a 50 % decrease in the stock, our investor talks focus on distraction, brand deterioration, and missing car sales,” the analysts said.
Tesla spokesman did not respond to the comment.
Despite the company’s losses, Tesla remains the most valuable car company in the world.
Secondly, to Tesla is the company TEYOTA Legacy Toyota, which costs $ 292 billion for the market.
Morgan Stanley analysts noticed many “stimuli” in the company’s pipeline, including Robotaxi in Tesla, is expected to strike Austin’s roads later this summer, another clarification of Ubutos, and the expected human robot before the end of the year.
However, expectations related to the connection of Tesla may have to be reduced, given that the CEO has a missing history. The deadlines.
