NEW YORK — JPMorgan has reiterated its “Underweight” rating for Tesla and maintained a $145 price target, warning of a potential 60% downside for the stock following the automaker’s first-quarter 2026 vehicle delivery report, according to Investing.com, The Deep Dive, Business Insider, The Chronicle Journal, TipRanks, and Morningstar. Each of the bullet points immediately below have been confirmed by at least four of the six respected sources we curated on this story.
- Tesla delivered 358,000 vehicles in the first quarter of 2026, falling short of both market consensus estimates and JPMorgan’s own forecasts.
- The electric vehicle manufacturer produced over 50,000 more vehicles than it delivered during the quarter.
- This excess production resulted in the largest inventory build-up in the company’s history.
- Analysts expressed concerns that the record unsold inventory could negatively impact the automaker’s free cash flow.
- JPMorgan analyst Ryan Brinkman advised investors to approach the shares with a high degree of caution, noting significant execution risks.
Additional Details Reported
Analysts additionally noted that Tesla’s energy storage installations fell 15% year-over-year, marking the first decline in that segment since the second quarter of 2022. Furthermore, JPMorgan lowered its earnings per share estimates for the company for both the first quarter and the full years of 2026 and 2027. The investment firm highlighted a significant disconnect between the automaker’s current valuation, which includes a price-to-earnings ratio of 333, and the material collapse in consensus expectations for its performance metrics.
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