Tesla (TSLA) Delivery Miss Highlights Earnings Pressure, JPMorgan Maintains Underweight

JPMorgan has released a report indicating that Tesla (TSLA, Financial) fell short of market expectations in their most recent delivery figures, highlighting increased risks for the company’s 2024 earnings per share projection. Over the past year, Tesla’s earnings estimate has been reduced from $3.85 to $2.43 per share, a decline of 36%.

The report notes that Tesla’s stock has declined 21% from its historical high, and its 2024 earnings forecast has dropped by 67% from its peak. Projections for earnings per share between 2025 and 2030 have been reduced by 63%, 59%, 61%, 62%, 54%, and 47% respectively. Although there hasn’t been a drastic revision since the last U.S. elections, JPMorgan expresses concern that a significant downgrade may be forthcoming.

JPMorgan maintains an “underweight” rating for Tesla with a target price of $135. The bank cites Tesla’s reduced market share in the U.S. and declining electric vehicle market share in most regions as evidence that the company may struggle to lead the global automotive industry’s transition to electrification.