JPMorgan Bearish on Tesla, Says Musk’s DOGE Role Is Hurting Sales

Tesla faced slowing electric-vehicle demand and pressure from the politicization of its brand in the first quarter of 2025. JPMorgan said Chief Executive Elon Musk’s deep involvement with the U.S. Department of Government Efficiency, or DOGE, had triggered a consumer backlash, with a particularly sharp impact on European sales. The bank sees this as a significant risk to the company’s fundamentals and valuation.

Ahead of Tesla’s first-quarter 2025 earnings report, JPMorgan reiterated its Underweight rating and cut its price target to $145, implying a decline of about 60% from the share price at the time. The bank said Tesla’s first-quarter deliveries missed market expectations, its inventory of unsold vehicles reached a record high and European sales fell sharply amid the political backlash.