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Investing.com - JPMorgan has reiterated its Underweight rating and $115.00 price target on Tesla (NASDAQ:TSLA), currently trading at $317.66 with a P/E ratio of 166, as the electric vehicle maker faces continued demand challenges. According to InvestingPro analysis, the stock appears overvalued at current levels.
The investment bank now expects Tesla’s second-quarter deliveries to decline by 19% year-over-year to approximately 360,000 vehicles, compared to 444,000 in the same period last year.
This projected figure represents an 8.3% shortfall compared to the Bloomberg consensus estimate of 392,000 deliveries and falls 6.5% below the company-compiled consensus of 385,000 units.
JPMorgan’s forecast, which reflects a 9% reduction from its previous estimate of 395,000 vehicles, is based on sales trend surveys through May in regions with reliable public data, third-party forecasts for other markets, and Chinese insurance registration data through mid-June.
The bank noted that the "softer demand" for Tesla vehicles observed in first-quarter results appears to have continued into the second quarter, contributing to an accelerated year-over-year decline in deliveries.
In other recent news, Tesla has reported several significant developments. Deutsche Bank (ETR:DBKGn) has reiterated its Buy rating on Tesla stock, maintaining a price target of $345.00, despite projecting a second-quarter delivery miss. The bank estimates Tesla will deliver approximately 355,000 vehicles in Q2 2025, falling short of the consensus of over 380,000. Meanwhile, Tesla has initiated the operation of its first V4 Superchargers in China, expanding its charging infrastructure in Shanghai, Chongqing, Gansu, and Zhejiang, with plans for further deployment. In another technological advancement, Tesla CEO Elon Musk announced the company’s first fully autonomous delivery of a Model Y, highlighting progress in self-driving technology. However, Tesla is also facing legal challenges, as a federal judge has allowed a lawsuit to proceed to trial over a fatal crash involving its Autopilot technology. The case involves claims of design defects and failure to warn, with the trial scheduled to begin next month. These recent developments underscore Tesla’s ongoing innovations and challenges in the evolving automotive landscape.
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