JPMorgan analysts have remarked that Tesla’s recent market capitalization decline, wiping out approximately 48% of its value within months, is unprecedented in automotive history. The downturn is attributed to weakening sales and leadership concerns, particularly surrounding CEO Elon Musk. Analysts noted they could not find “anything analogous in the history of the automotive industry.” They compared it to Japanese and Korean car brands losing sales during diplomatic disputes with China in 2012 and 2017 but highlighted that Tesla’s decline is not confined to a single market. JPMorgan reduced their price target on Tesla by about 41% from $230.58 to $135 and lowered vehicle delivery guidance for Q1 2025 to around 355,000 units, marking an 8% year-over-year decrease. Between December and recent trading hours, Tesla lost nearly 49% of its market cap, falling from $1.54 trillion to about $777 billion. This decline coincides with global sales drops and branding issues linked to Musk’s political affiliations. Despite these losses, Tesla remains the world’s most valuable car company, ahead of Toyota with a $292 billion market cap. — news from Business Insider
