Tesla's first-quarter sales could be the brand's worst in years, and its stock could collapse, analysts are now warning.
Tesla's sales in the first quarter of 2025 could fall so much that they will be at their lowest level in years.
Analysts do not expect an immediate improvement in the situation. In an analysis, the major bank JP Morgan writes that they are concerned about CEO Elon Musk's connection to Donald Trump and the White House.
In any case, the bank believes that it could negatively affect Tesla, both when it comes to the brand's sales and the share price.
In the past week, JP Morgan has reduced its forecast for Tesla's first-quarter deliveries from an already low estimate of 444,000 cars to now 'only' 355,000.
That number is not only below JP Morgan's previous estimates, but also significantly below the general expectation that Tesla will deliver at least 430,000 cars.
The worst Tesla sales in years could trigger a collapse on the stock market
If the figures hold true, it marks an 8 percent decrease compared to deliveries in the first quarter of 2024.
While it may be difficult to say anything about Tesla's car deliveries, there is a clear downward trend. In Denmark alone, sales fell by 58 percent in February, and in Germany the brand took a nosedive by 70 percent.
In Norway, where Tesla has traditionally been loved, sales have fallen by 44.4 percent. However, there are signs that they are on the rise again. Read more about it here .
However, other analysts also point out that the decline in sales should be seen as an expression that a new Model Y is on the way.
In a note to its investors, JP Morgan writes that it is lowering the price target for Tesla shares to $120. This is a 50 percent drop from the $249 the stock was trading at just a week ago.
Tesla's market capitalization has already fallen by about 49% since December, from a peak value of $1.54 trillion to below $800 billion.
That's what Business Insider writes.
JP Morgan's automotive industry analyst, Ryan Brinkman, writes in an analysis that it is difficult to find a similar situation in the history of the automotive industry where a brand has lost so much value in such a short time.
According to Fortune, which has reviewed the analysis, JP Morgan believes that the sudden drop in Tesla's value is unprecedented at all.
The bank notes that Musk's involvement in a public organization has had a negative impact on the perception of Tesla.
– Musk's work with the US public has proven controversial nationally, and while just as many members of the political right wing may be satisfied as those on the left wing are dissatisfied, the effect on Tesla sales still appears to be negative, the analysis states.
However, it's not just a falling share price and sluggish sales that Tesla has to deal with. The car brand has already been attacked several times by angry people.
Among other things, a man set himself on fire after trying to burn down a Supercharger station in protest against Elon Musk.
