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About 48% of Tesla’s market capitalization was deleted in several months.
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The decline came against the backdrop of sagging sales and fears about leadership, namely its CEO Elon Musk.
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JPMorgan analysts said they couldn’t find “something similar in the history of the automotive industry.”
Tesla has lost so much value in such a short period of time that JPMorgan analysts said they couldn’t think of another comparable moment in the history of the car.
“We are struggling to think about something analogous about the history of the automotive industry, in which a brand lost so much so fast,” they wrote, adding that the closest example was when Japanese and Korean car brands lost sales against Diplomatic Disputes respectively with China in 2012 and 2017.
JPMorgan analysts wrote on a note on Wednesday that these historical cases are “limited to one market, while the decline in Tesla sales in 2025 is not specific to any nation or geography.”
JPMORGAN analysts have reduced Tesla’s price price by about 41% from $ 230.58 to $ 135, reducing vehicle supply guidelines for the first quarter of 2025 to about 355,000-implementation by 8% compared to the year from the first quarter of 2024.
From December to Wednesday after hours of trade, Tesla lost nearly 49% of its market cap, seeing its peak value of $ 1.54 trillion from the end of last year to about $ 777 billion.
This steep decline has come as Tesla has been experiencing a global decline in sales and branding problems arising from the policy of its CEO.
For a moment, the big bet of Elon Musk for Donald Trump seemed to pay off. Tesla was the only EV company to see its shares after the president’s victory in November. The main assumption seems to be that Musk’s company can benefit if Tesla’s CEO has the ear of the new administration and leads the White House effort to reduce government spending.
Now this assumption is being disputed in the most guidelines of some analysts, which notes a possible wind in demand due to Musk’s work with the Trump administration.
“The work of Musk with the Ministry of Government Efficiency has proved contradictory in the country, and although so many members of political law can be satisfied as those on the left are dissatisfied, the effect on Tesla sales still seems negative,” JPMORGAN analysts wrote.
In recent weeks, Tesla showrooms in the United States have seen protests and a series of vandalism incidents. Trump rushed to Tesla’s defense and said he would consider the labeling of the contractors of the internal terrorists.