The electric car industry has seen rapid growth over the past decade, with Tesla leading the way as the face of innovation in green technology.
However, recent events have caused a shift in the company’s fortunes.
JPMorgan has significantly lowered its sales expectations for Tesla, citing a range of factors that are contributing to the company's struggles.
According to JPMorgan, Tesla's sales for the first quarter of 2025 could fall between 8% and 28% compared to the last quarter of 2024, writes El Economista.
The primary reason for this downturn is Elon Musk’s decreasing popularity, especially due to his involvement with Donald Trump’s administration.
Ryan Brinkman, a JPMorgan analyst, remarked that this is an unprecedented situation in the automotive industry, where a brand has lost so much value in such a short time.
Brinkman also emphasized that the boycott against Musk is a global issue. It’s not limited to one country or region but is affecting Tesla’s key markets worldwide, including Europe, the U.S., and China.
This widespread backlash is much more serious than the temporary boycotts seen in the past, like China’s boycott of Japanese cars from 2012 to 2017.
In this case, the only way out for Tesla might be for Musk to step down.
JPMorgan specifically blames Musk’s role in the Trump administration for his downfall in the U.S., where he served as the director of the Department of Government Efficiency (DOGE).
In Europe, his controversial remarks supporting Russia’s war against Ukraine, criticizing NATO, and backing far-right political groups have made him a target of left-wing consumers.
This group, which has traditionally been more inclined to buy electric cars, now sees Musk as a divisive figure.
As a result, Tesla’s stock has taken a hit. JPMorgan now values the shares at $120, half of their opening price just a few days ago.
Tesla's stock price dropped 5% on Wall Street, continuing a downward trend that has seen the company lose half of its market value since December.
