Analyst rips JPMorgan's Tesla outlook, claims 50% downside not bearish enough

Core Viewpoint - Tesla's stock has significantly declined by 40.23% in 2025, currently priced at $241.37, raising concerns about its valuation and future performance [1]. Group 1: Stock Performance and Predictions - JPMorgan's analyst forecasts a potential 50% downside for Tesla shares, suggesting a market capitalization of $405.3 billion if the stock halves [3]. - Gordon Johnson from GJL Research challenges JPMorgan's estimates, questioning the rationale behind a $405.3 billion valuation for a company with declining sales and brand quality [4][5]. - Tesla is expected to face a sales decline for the second consecutive year, as indicated by recent delivery reports [6]. Group 2: Brand and Market Position - Despite the stock decline, Tesla would still be valued higher than BYD and Toyota, even with only 13% of their vehicle deliveries in the past year [4]. - The brand has suffered damage due to controversial political activities by Elon Musk, which has not been mitigated [7]. - Tesla's valuation has historically been driven by narratives and hope rather than solely by financial performance [8]. Group 3: Innovation and Future Prospects - Tesla has positioned itself as an innovation leader, although its technological advancements have not fully met initial promises [9]. - The company continues to promote narratives around autonomous driving, AI, and robotics, with plans for future projects like Mars exploration [10].