Tesla has recovered about 7 % since its large decrease earlier this week. It remains approximately 50 % since its rise on December 17. JPMorgan expects that Tesla will provide about 355,000 units, a decrease of 20 % of its original prediction of 444,000. The company also believes that Tesla shares will eventually decrease to $ 120 per share.
I think anyone involved in the auto industry somehow is a kind of combustion with the ongoing changes that are now the distinctive feature of the Trump administration’s second. Many of these changes seem to be at the request of Elon Musk himself directly, either directly through President Donald Trump or through the paragraph.
These changes are not quite common between the base that usually buying Tesla compounds, and therefore, it seems that the time has come again for Musk and Tesla to pay PIPER. JPMorgan this week has released an unpredictable prediction of the brand: this will be the worst result of the delivery that Tesla witnessed in three years.
Specifically, JPMorgan reduced the TESLA delivery expectations by 20 % to 355,000 units, decreasing from the projection of the first analyst of 444,000. The initial projection of the company was slightly higher than 430,000 units, most of which actually agreed in this square. Tesla’s arrow is also believed to have a long way, with access to $ 120 per share, or about half of what it is now.
There are several reasons for that. For beginners, Wanton Bludgeoning did not serve in the US market by customs tariffs except to harm car companies, including Tesla. It is the guess of anyone who will submit to the identification car companies and all suppliers associated with it in the end. Today, nothing can be. Or, if Canada, Mexico, the European Union, or China are slightly Trump in any way, the customs tariff is running. This is not good for any job company that wants to plan for the future.
Next, the right -wing ELON Musk exploits on X Twitter and in realistic policy are now completely not fully confused. His words and speech have crossed simple inflammatory tweets on social media, and in the world of influencing global politics. Its influence is seen commonly as dangerous by any of the non -right minorities or person. It is called Canada directly “not a real country”, and it feeds on the growing growth-but in reality-it flows to join America’s neighbor to the north. This only encouraged Canadians (and others around the world) to boycott the brand.
Moreover, sales began to collapse in most Europe. Chinese market sales are somewhat strong, but this will not be enough to keep this momentum. Also, many Chinese brands were infringed on the market share in Tesla, something that was covered even in the New York Times this week.
Photo by: Byd
Also, cars are just a kind of old. The 3 and Model Y, the latter recently, may be updated, but they are not different from the cars that they replaced. Add to musk behavior, inflation and high interest rates, and Tesla has an ideal storm to reduce sales.
Tesla problems appeared in the middle of the first quarter, so perhaps we will not know the certainty of what is the damage until the Q2 numbers are released within a few weeks. Either way, it doesn’t look too good for Tesla. Jpmorgan says that the fall of Tesla “is not equal to” in the auto market.
The company said: “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.”
Call the author: kevin.williams@insreadeevs.com
