JP Morgan warns that Tesla, Inc. (TSLA.US) may drop 60% before earnings.

Before Tesla, Inc. (TSLA.US) released its first-quarter financial report, JPMorgan reiterated its "underweight" rating on this electric car and autonomous driving company. Analyst Ryan Brinkman pointed out that Tesla, Inc.'s first-quarter delivery report performed poorly and the installation volume of energy storage devices also saw a year-on-year decrease. Brinkman and his team currently expect Tesla, Inc.'s first-quarter earnings per share to be $0.30, lower than the previous expectation of $0.43, while the market generally expects $0.38. Brinkman said, "We still believe that Tesla, Inc.'s stock price will fall by 60%, to our target price of $145 by December 2026, and we recommend investors to maintain a high degree of caution on Tesla, Inc.'s stock. Although the increase in Tesla, Inc.'s stock price reflects a significant enhancement in market expectations for its future profitability over the next several years, at the same time, at least until 2030, all performance indicators are expected to decrease significantly, so investors must fully consider execution risks and the time value of funds." He pointed out that despite the lackluster growth in delivery volume, it is "incredible" that Tesla, Inc.'s current stock price is still more than 50% higher than when it reached its peak in deliveries in June 2022. Looking ahead, JPMorgan believes that Tesla, Inc.'s investment positives, such as its highly differentiated business model, attractive product portfolio, and leading technology, cannot fully offset its above-average execution risks, increasingly fierce competition, ongoing controversies over brand image, and the impact of valuation. It is reported that Tesla will announce its first-quarter financial report on April 22. Due to lower than expected first-quarter delivery volume, Tesla's stock price has recently declined. The stock fell more than 2% on Monday to $352.82, down 22% since the beginning of the year.