J.p. morgan slams tesla, sparks sell-off fears amid spacex ipo
A bearish signal from J.P. Morgan Chase is sending tremors through the electric vehicle market, with analysts suggesting a potential sell-off for Tesla as the SpaceX initial public offering looms large.
Analysts cite collapsed expectations for tesla’s future
Investment bank J.P. Morgan Chase has delivered a ‘sell’ rating on Tesla Inc., triggering immediate speculation of a stock downturn. The assessment, fueled by a report from analysts citing a fundamental collapse in Tesla’s financial performance across all time horizons, arrives at a particularly inopportune moment – just as SpaceX prepares to enter the public market.
According to Yahoo Finance executive editor Brian Sozzi, the bank’s research indicates that expectations for Tesla’s future performance have utterly evaporated, leaving investors facing a stark reality. This isn’t just a temporary dip; the analysts argue that Tesla’s trajectory is inextricably linked to a ‘sharp pivot’ to significantly outperform previously projected metrics, a proposition that currently feels… tenuous.
Percoco’s optimism contrasts with jpmorgan’s pessimism
However, Morgan Stanley analyst Andrew Percoco offers a decidedly more bullish perspective, projecting a nearly 15% upside for Tesla stock, underpinned by optimistic delivery forecasts exceeding 1.6 million vehicles in 2026. Percoco highlights the potential impact of Robotaxi deployment in Austin, viewing it as a key catalyst for future valuation. Yet, this rosy outlook is tempered by the ongoing National Highway Traffic Safety Administration (NHTSA) investigation into Tesla’s Full Self-Driving (FSD) system – a persistent cloud hanging over the company’s ambitions.
Tesla’s Q1 2026 delivery figures, totaling over 358,000 vehicles worldwide, fell short of market expectations, compounded by a decline in energy storage deployments. But, SpaceX itself is accelerating toward its IPO, with the Nasdaq 100 reportedly adjusting its listing criteria to facilitate a streamlined entry. Initial valuations for SpaceX had reached a staggering $2 trillion, a figure swiftly dismissed by CEO Elon Musk. The S&P 500 Index, too, is reportedly considering modifications to accommodate SpaceX, though S&P Global Dow Jones Indices has declined to comment on the speculation.
The market, it seems, is caught in a delicate dance – a simultaneous assessment of Tesla’s struggling performance and the impending arrival of a competitor vying for investor attention. Frankly, the volatility is… bracing.