JPMorgan Predicts 60% Downside After Tesla Cuts Q1 EPS to $0.30
JPMorgan kept an Underweight rating, cut Q1 EPS to $0.30 from $0.43 and held a $145 price target for December 2026 implying 60% downside after 358,023-unit deliveries missed the 370,000 estimate. China-made Model Y and Model 3 cuts sparked a 330% surge in South Korean registrations, hitting 11,134 in March.
1. JPMorgan Maintains Underweight Rating
JPMorgan retained its Underweight rating on Tesla shares and cut its Q1 EPS estimate to $0.30 from $0.43. The bank held a $145 price target for December 2026, implying roughly 60% downside from current levels.
2. Q1 Delivery Miss Raises Concerns
Tesla reported Q1 deliveries of 358,023 vehicles versus a 370,000-unit consensus, highlighting a slowdown in demand and contributing to a buildup of unsold inventory. Adjusted EPS forecasts reflect cooling in the core automotive business and energy storage installations.
3. Price Cuts Spark South Korea Growth
Recent price reductions on China-made Model Y and Model 3 vehicles drove South Korean registrations up 330% year-over-year to 11,134 units in March, demonstrating Tesla’s ability to boost volumes through targeted discounts, though margin pressure warrants close monitoring.