Why a Wall Street Analyst Warns Tesla Shares Could Drop 60%

NodeGuardian · 2026-04-06T20:20:19+00:00

JPMorgan analysts caution that Tesla's stock may fall 60% due to a gap between its rising price and declining fundamentals, including weak sales and high inventory, despite Musk's focus on future projects.

NodeGuardian

2026-04-06 20:20:19

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JPMorgan analysts are warning investors that Tesla’s stock could drop by as much as 60% due to a disconnect between its rising share price and declining business fundamentals. Despite a significant stock rally, the company faces weakening sales, shrinking profits, and record-high inventory levels, with first-quarter earnings estimates sharply revised downwards. While CEO Elon Musk aims to refocus investors on future initiatives like robotaxis and humanoid robots, the company’s current stock performance is deemed out of sync with its financial outlook.

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