--- title: "JP Morgan Concerned Tesla Stock Will Crash by 60 Percent in Face of Ongoing Business Failures" description: "Morgan analysts are now warning that Tesla's share price could drop by a whopping 60 percent following disastrous sales numbers." date: "2026-04-07" modified: "2026-04-07" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/advanced-transport/jp-morgan-tesla-stock-crash-60-percent" categories: - "Advanced Transport" - "Elon Musk" - "Future Society" - "Tesla" - "The Industrialists" --- # JP Morgan Concerned Tesla Stock Will Crash by 60 Percent in Face of Ongoing Business Failures ![Morgan analysts are now warning that Tesla's share price could drop by a whopping 60 percent following disastrous sales numbers.]() *BRENDAN SMIALOWSKI/AFP via Getty Images* Tesla's first quarter results this year left plenty to be desired. The embattled EV maker's sales fell short of Wall Street's expectations, the [second-worst quarter of sales]() since 2022. The Elon Musk-led company has struggled for two years now to keep its core business alive as competitors, particularly from China, continue to eat its lunch, taking over vast swathes of the international electric car market. Meanwhile, the company's mercurial CEO — whose extremist rhetoric and embrace of far-right idealism has proven [alienating]() to say the least — kicked off what could be a [long and arduous pivot away from EV sales]() towards robotaxis and humanoid robots. The company's progress on the former remains [far behind the competition](), while the latter is likely still years from going on sale. In other words, the short-term prognosis isn't exactly glowing. To underscore those jitters, JP Morgan analysts now warning that the company's share price — which remains massively inflated compared to its business fundamentals with a price-to-earnings ratio of well over 300 — could [drop by a whopping 60 percent](). "With expectations for Tesla performance having collapsed for all financial and performance metrics across all time periods through the end of the decade, the +50 percent rise in Tesla shares and +32 percent increase in analyst price targets as this collapse has taken place implies an expectation for a sharp pivot to materially better than earlier expected performance in the time beyond this decade," JP Morgan analyst Ryan Brinkman wrote in a Monday note. "We advise investors cautiously approach this expectation within the context of both execution risk and the time value of money," he added. He's right that many signs point towards a major correction. The company's shares are down over 20 percent over the past six months, but remains up an astonishing 44 percent over the last 12 months. Following its Q1 delivery miss and JP Morgan warning of a share collapse, investors are clearly unimpressed, sending the stock sliding over five percent over the last five days. It's not just JP Morgan ringing the alarm bells. Last week, HSBC stock analyst Mike Tyndall [reiterated a "reduce" rating on Tesla](), also predicting that the company's shares could crash by around 60 percent. In short, as Tesla prepares to reinvent itself, its core business continues to stagnate. The company's delivery numbers showed that it's relying almost entirely on sales of its entry-level Model 3 sedan and Model Y SUV. Tesla hasn't released a new car in six years — except for the Cybertruck, which turned out to be a [major flop](). Making it all worse, Musk's own commitment to the company and its original mission of selling EVs [has been shaky at best](). "When I asked \[Musk\] what success looked like," Tesla’s former president of global sales, delivery, and service Jon McNeill [recently told the *Washington Post*](), "he said, 'success is getting me down to one day a week at Tesla so I can get back to my first love, which is rockets.'" **More on Tesla:** [*Elon Musk Secretly Shared His Number One Priority at Tesla and It Really Says It All*]() ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()