EV maker Tesla (TSLA) continues to face skepticism from JPMorgan (JPM) analyst Ryan Brinkman, who remains one of the most bearish voices on the stock even after its latest earnings report. In a new note, Brinkman kept his Sell rating and $145 price target, which implies about 61% downside from current levels. This places him among the lowest forecasters on Wall Street, especially given that Tesla shares have not traded below $200 since mid-2024. As a result, his outlook stands in sharp contrast to more optimistic views on the company.
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Trade TSLA with leverageEven though Tesla reported a strong first quarter, Brinkman is not convinced the performance will last. While revenue grew 16% year-over-year to $22.39 billion and earnings came in above expectations, he argues that these results do not justify the company’s current valuation. In addition, he raised concerns about potential liabilities tied to full self-driving and an aggressive increase in spending. The company now expects capital expenditures to reach $25 billion this year, up sharply from $8.5 billion last year, which already exceeded its free cash flow.
Brinkman pointed out that much of this spending is going toward areas that currently generate little or no revenue, which could lead to significant cash outflows. At the same time, investors reacted negatively to several updates, including the higher capex outlook, delays in robotaxi progress, no clear timeline for the Optimus robot, and weaker performance in the energy segment.
What Is the Prediction for TSLA Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 12 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $412.91 per share implies 10.5% upside potential.
