- Tesla’s (TSLA) stock rose $18.12 or 7.86% to $248.92, recovering 10% since a 15.4% drop on Monday, despite J.P. Morgan cutting its price target to $120 from $135 amid expected delivery declines to 1.78 million vehicles in 2025.
- J.P. Morgan (JPM) highlighted a shift in customer sentiment, with “Tesla Takedown” protests, boycotts, and second-hand sales linked to Elon Musk’s role in Trump’s efficiency department, yet President Trump labeled attacks on Tesla stores as domestic terrorism.
- Despite erasing most post-election gains from November and hitting a high in December, Tesla’s $248.92 share price defies the brokerage’s $120 forecast, falling short of the $370 median target as Musk’s influence drives both backlash and resilience.
Tesla Inc.’s (TSLA) shares surged in midday trading Wednesday, rising $18.12, or 7.86%, to $248.92 in a notable rebound. This comes despite J.P. Morgan (JPM) analysts dampening the outlook by cutting their price target from $135 to $120, citing anticipated weaker demand and changing customer sentiment. This uptick follows a brutal 15.4% plunge on Monday – the stock’s steepest one – day fall in over four years—yet it has clawed back 10% since then, reflecting a volatile but defiant market response. J.P. Morgan anticipates Tesla will deliver just 1.78 million vehicles in 2025, a 1% dip from 2024’s figures, marking a second consecutive year of decline as the electric vehicle giant grapples with a backlash tied to CEO Elon Musk’s high-profile role in the Trump administration’s Department of Government Efficiency.
Musk, the world’s richest individual, has faced criticism for trying to reduce government spending, igniting the ‘Tesla Takedown’ protests that have spread across Tesla stores in the U.S. and internationally. These demonstrations, paired with sales boycotts and a rush to offload Tesla vehicles on the second-hand market, signal a growing unease among existing and prospective buyers, according to J.P. Morgan’s analysis. Despite this, President Donald Trump threw his weight behind Musk on Tuesday, declaring that attacks on Tesla dealerships would be treated as domestic terrorism—a move that may have bolstered investor confidence and contributed to the stock’s $248.92 perch, though it remains well below the median target of $370 set by LSEG data.
The stock’s journey has been a rollercoaster since its December peak, when it rode high on post-election optimism after Trump’s November victory, only to shed most of those gains as Musk’s political involvement intensified. J.P. Morgan’s lowered $120 target underscores concerns over Tesla’s ability to maintain delivery momentum amid these headwinds, projecting a 1.78 million-unit year that falls short of the growth many investors once expected. Yet, today’s price surge suggests a market unwilling to fully abandon Tesla, perhaps buoyed by Trump’s vocal support and the company’s enduring brand strength. This tug-of-war between Tesla’s operational challenges and its stock’s defiance paints a complex picture—one where Musk’s polarizing presence looms large, but the EV maker’s fate remains far from settled.
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